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THK    I'HIl.ADKM'HIA    NATIONAL,   BANK, 
419-421-423  Chestnut  Street. 


THE  PHILADELPHIA 
NATIONAL    BANK 

A  Century^ s  Record 
1803-1903 

BY 

A  STOCKHOLDER 
31llu0traceD 


THE  PHILADELPHIA  NATIONAL  BANK 

(539) 

419-421-423   CHESTNUT  STREET 

PHILADELPHIA 

1903 


Copyright,    1903 
The  Philadelphia  National  Banlc 


MADE     FOR     THE     PHILADELPHIA     NATIONAL    BANK 
BY    WM.     F.     FELL    COMPANY,     PHILADELPHIA,    PA. 


TO   THE 

STOCKHOLDERS,  DEPOSITORS,  AND  PATRONS 

OF 

THE  PHILADELPHIA  NATIONAL  BANK 
THIS  CHRONICLE 

OF  ITS 

CAREER  AND   WORK 
DURING  THE  PAST  CENTURY 

IS 

RESPECTFULLY  INSCRIBED 


THE   PHILADELPHIA   BANK 

Founded 

August  3,  1803 

Began  Business 

September  19,  1803 

Chartered 

March  5,  1804 


THE   PHILADELPHIA   NATIONAL   BANK 

(539) 

Organized 

October  20,  1864 

Began  Business 

October  25,  1864 


LIST   OF   ILLUSTRATIONS 


LIST   OF   ILLUSTRATIONS 


PAGE 

The  Philadelphia  National  Bank,  419-421-423  Chestnut  Street, Frontispiece 

George  Clymer, 20 

The  First  Philadelphia  Bank,  No.  104  Chestnut  Street, 24 

John  Welsh, 28 

Quintin  Campbell, 32 

Early  Bank  Notes,  1810-1816-1819,  with  oflBcers'  signatures, 36 

The  Second  Philadelphia  Bank,  South  Fourth  Street  below  Chestnut  Street, 40 

John  Read, 44 

Fractional  Notes  of  1815, 52 

Fractional  Notes  of  1815, 56 

Early  Bank  Check,  1814.     Bank  Notes,  1S51  and  1861,  with  officers'  signatures,--  60 

Samuel  F.  Smith, 64 

Thomas  Robins, 72 

Benjamin  B.  Comegys, 76 

N.  Parker  Shortridge,  President, 80 

J.  Livingston  Erringer, 84 

Richard  Ashhurst, 1 88 

The  Third  Philadelphia  Bank,  Southwest  Corner  Fourth  and  Chestnut  Streets, 92 

President  and  Cashier, 96 

Lincoln  Godfrey,  First  Vice-President, 104 

John  H.   Converse, 108 

George  Wood, 112 

Lawrence  Johnson, 120 

Alfred  C.  Harrison, 124 

View  of  Banking  Room, 128 

Levi  L.  Rue,  Second  Vice-President  and  Cashier, 136 

II 


12  List  of  Illustrations 


PAGE 


George  Harrison  Frazier, 140 

Alexander  J.  Cassatt, 144 

Percival  Roberts,  Jr., 148 

George  H.  McFadden, 156 

Tellers'  Department, 160 

William  Potter, 164 

Edward  T.  Stotesbury, 172 

James  F.  Hope, 176 

Bookkeepers'  Department, 180 

Harry  J.  Keser,  Assistant  Cashier, 184 

Correspondence  Department, 188 


TABLE   OF   CONTENTS 


TABLE   OF   CONTENTS 


I.  Beginning  of  the  Bank     1803-1S10  page 

The  Philadelphia  Bank — Its  Origin — Its  Organization — Its  Charter 
by  the  State  of  Pennsylvania — Its  Business  Progress — Early 
Banking  Methods, 19 

II.  The  First  War  Period     1808-1816 

The  War  with  England — The  Embargo — Close  of  the  First  United 
States  Bank — The  War  Begins — Progress  of  the  War — Sus- 
pension of  Specie  Payments — Resumption — Earliest  Philadel- 
phia Bank  Statement, 49 

IIL  The  United  States  Bank  Era     181 6-1 841 

Banking  in  Philadelphia — Bank  Robberies — The  Philadelphia  Bank 
Charter  Extended — Removal  of  the  Deposits  from  the  United 
States  Bank — The  Panic  of  1S37 — End  of  the  United  States 
Bank, 71 

IV.  Ups  and  Downs  of  Early  Banking     1841-1855 

Most  Serious  Banking  Depression — Recuperation — Internal  Im- 
provements in  Pennsylvania — Continuing  Prosperity, loi 

V.  The  Financial  Crisis  of  1857     1 856-1 859 

Events  Leading  to  the  Panic — The  Crisis  Comes — An  Early  Re- 
sumption—The Present  Banking  House  Bought, 119 

VI.  The  Second  War  Period     1 860-1 865 

The  Brief  Suspension  in  i860 — The  War  Opens — The  Long  Specie 

Suspension  Begins — Progress  of  the  War — End  of  the  War 135 

VII.  The  Philadelphia  National  Bank     1 864-1 879 

Its  First  National  Charter — Recuperation  and  Reconstruction — The 

Panic  of  1873 — Final  Resumption  of  Specie  Payments, 153 

15 


i6  Table  of  Contents 

VIII.  Closing  Years  of  the  Century     1 879-1 903  page 

The  Administration  of  President  Comegys — Progress  of  the  Bank — 
Various  Financial  Panics — Mr.  Comegys'  Closing  Years — 
President  N.  Parker  Shortridge,  His  Successor, 171 

IX.  Appendix 

Bank  Statements,  1816-1903 — Organization,  1803-1903 — Officers 
During  the  Century — Directors — Dividends — Biographies  of  the 
Directors,  1903, 191 


Index, 215 


I 

BEGINNING    OF    THE    BANK 

1803-1 810 


The  Philadelphia  Bank 


I 

BEGINNING  OF  THE  BANK 
1803-1810 

The  Philadelphia  Bank — Its  Origi7i — Its  Organization — 
Its  Charter  by  the  State  of  Pemisylvania — Its  Business 
Progress — Early  Banking  Methods. 

ITS  ORIGIN 

THE  Philadelphia  Bank  originated  at  a  meeting  held 
in  the  counting-house  of  John  Welsh,  No.  31  South 
Wharves,  in  the  city  of  Philadelphia,  August  3,  1803. 
It  began  business  in  a  rented  building  on  the  south  side  of 
Chestnut  Street  (old  No.  104),  between  Third  Street  and 
Whalebone  Alley,  aftenvard  called  Hudson  Street,  and  now 
Orianna  Street,  at  nine  o'clock  on  Monday  morning,  Sep- 
tember 19,  1803. 

The  first  comprehensive  plan  for  an  incorporated  bank 
in  the  United  States  was  suggested  by  Alexander  Hamilton, 
during  the  Revolutionary  War,  in  1779,  but  without  result, 
though  out  of  his  ideas  grew  the  subsequent  organization, 
formed  in  1780,  for  the  purpose  of  sending  supplies  to  the  army. 
This  was  popularly  known  as  the  "Bank  of  Pennsylvania," 
and  was  the  chief  reliance  in  keeping  the  army  equipped  in  the 
field  until  the  close  of  the  war,  sending  it  rations,  and  con- 
tinuing in  operation  about  eighteen  months.     Robert  Morris, 

19 


20  The  Philadelphia  Bank 

"the  financier  of  the  Revolution,"  was  at  the  head  of  this 
enterprise. 

Robert  Morris,. in  1781,  submitted  to  Congress  a  plan  for 
establishing  a  national  bank,  which  resulted  in  the  charter  by 
Congress,  on  May  26,  1781,  of  the  Bank  of  North  America  at 
Philadelphia.  That  bank,  during  the  next  year,  also  got  a 
charter  from  the  State  of  Pennsylvania,  as  there  were  doubts 
of  the  validity  of  the  charter  by  Congress.  This  was  the  first 
incorporated  bank  in  the  country.  The  second  was  the  Bank 
of  Massachusetts  at  Boston,  chartered  February  7,  1784,  and 
the  third,  the  Bank  of  New  York  at  New  York,  chartered 
June  9,  1784.  At  the  time  of  the  adoption  of  the  Constitu- 
tion, in  1787,  these  three  were  the  only  incorporated  banks  in 
America.  Money  was  then  very  scarce,  and  the  entire  stock 
of  specie  in  the  United  States  was  estimated  as  not  exceeding 
$2,000,000,  and  almost  all  in  foreign  coins.  A  small  part  was 
held  by  the  three  banks,  but  the  greater  portion  was  the  savings 
of  individuals,  being  generally  hoarded.  The  United  States 
Mint  was  established  in  Philadelphia  in  1793,  and  soon  there- 
after began  manufacturing  the  new  American  coinage. 

The  Maryland  Bank  at  Baltimore  was  chartered  February 
7,  1790.  Congress  chartered  the  first  Bank  of  the  United 
States,  located  in  Philadelphia,  in  February,  1791,  the  charter 
running  twenty  years,  and  for  this  institution,  a  few  years  later, 
was  erected  the  building  on  Third  Street,  south  of  Chestnut 
Street,  now  owned  by  the  Girard  Estate  and  occupied  by  the 
Girard  National  Bank.  When  this  first  United  States  Bank 
charter  expired  in  181 1,  Congress  declined  to  renew  it.  In 
1 791  the  entire  revenues  of  all  the  custom  houses  of  the  country 
(the  largest  being  at  Philadelphia)  were  but  $1,900,000,  and 
this  was  the  chief  support  of  the  Government. 

The  General  Assembly  of  the  State  of  Pennsylvania  in  1793 
chartered  the  Pennsylvania  Bank,  which  existed  until  1857. 


Its  Orimn  21 


i) 


When  the  Philadelphia  Bank  was  projected  in  the  summer 
of  1803,  there  were  three  banks  in  the  city,  the  Bank  of 
North  America,  the  Bank  of  the  United  States,  and  the 
Pennsylvania  Bank,  and  there  were  then  about  forty  banks 
in  the  entire  country,  the  increase  of  business  and  general 
expansion  following  a  period  of  peace  having  stimulated  the 
growth  of  banking. 

Philadelphia  was  then  the  chief  city  of  the  United  States 
in  size  and  splendor,  its  leading  seaport,  and  had  been  the 
national  capital,  which  was  only  recently  removed  to  the  newly 
founded  city  of  Washington.  The  growth  of  commerce  and 
industry  had  greatly  enlarged  the  city  and  its  business  interests. 
With  Southwark  and  Kensington,  the  city  extended  nearly 
three  miles  along  the  Delaware  River,  and  had  13,000  houses 
and  an  estimated  population  of  80,000.  Its  leading  trades 
were  shipbuilding  and  the  export  of  flour,  sending  away  400,000 
barrels  annually.  The  need  of  more  banking  capital  was  felt, 
and  this  necessity,  together  with  some  dissatisfaction,  caused 
by  existing  banking  methods,  led  a  large  body  of  merchants  to 
suggest  the  formation  of  another  bank.  The  crystallization 
of  this  motive  into  the  actual  organization  of  the  Philadelphia 
Bank,  and  the  procuring  of  the  charter  from  the  General 
Assembly  of  Pennsylvania,  despite  powerful  opposition,  are 
generally  attributed  to  the  guiding  genius  of  John  Welsh,  then 
a  leading  merchant,  in  the  prime  of  business  life,  who  for  over 
a  half-century  was  a  director  of  the  institution,  until  his  death 
at  the  age  of  eighty-four,  in  the  year  1854.  Mr.  Welsh  was 
always  called  "the  Father  of  the  Bank,"  and  took  a  very 
prominent  part  in  its  early  management.  His  portrait  ap- 
peared as  a  vignette  on  the  Philadelphia  Bank  notes. 

John  Welsh  was  of  Scottish  descent,  his  ancestors  coming 
originally  from  Ayr.  He  was  born  near  Stanton,  Delaware, 
August  I,  1770,  and  after  receiving  an  education  at  the  schools 


22  The  Philadelphia  Bank 

of  that  locality,  came  to  Philadelphia  in  1786.  Daniel  Burns,  a 
Quaker  preacher  who  had  made  a  missionary  tour  in  Delaware, 
visited  Stanton,  and  forming  his  acquaintance,  through  the 
friendship  of  Burns,  young  Welsh  was  taken  as  apprentice 
by  Joseph  Russell,  extensively  engaged  in  the  Philadelphia 
flour  trade.  Becoming  of  age  in  1791,  his  apprenticeship 
closed,  and  after  making  a  voyage  as  supercargo  to  San  Dom- 
ingo, he  accepted  a  position  in  the  counting  house  of  Robert 
Ralston,  then  a  leading  merchant.  His  advancement  was 
rapid,  and  during  the  yellow-fever  scourge  in  Philadelphia  in 
1793,  when  most  of  the  population  fled  from  the  city,  he  re- 
mained in  sole  charge  of  Mr.  Ralston's  affairs.  John  Welsh  in 
1794  went  into  business  for  himself,  and  his  mercantile  house, 
then  founded,  at  a  time  when  the  foreign  trade  of  the  United 
States  was  largely  concentrated  in  Philadelphia,  has  been 
continued  for  more  than  a  century  by  his  descendants,  first 
by  his  sons  as  S.  and  W.  Welsh  and  now  by  the  later  generations 
as  S.  and  J.  Welsh.  Subsequently  to  the  close  of  the  war  of 
181 2,  in  the  great  revival  of  American  commerce,  John  Welsh 
became  one  of  the  most  prominent  shipping  merchants  of  the 
country,  and  he  was  then  the  largest  owner  of  vessels  in  Phil- 
adelphia. It  is  said  of  him,  that  he  was  always  fully  abreast 
of  commercial  affairs  throughout  the  world,  had  acquired 
vast  knowledge  of  the  products  and  wants  of  all  countries  as 
represented  in  the  world's  intercourse,  and  was  thoroughly 
conversant  with  the  construction  and  outfit  of  all  ships.  He 
was  connected  with  many  business  corporations,  and  held  only 
one  public  position,  early  in  the  last  century,  when  he  was  for 
several  years  an  inspector  of  the  famous  Walnut  Street  prison. 
John  Welsh  died  in  Philadelphia,  March  4,  1854. 

The  preliminaries  above  referred  to  resulted  in  the  meet- 
ing held  at  Mr.  Welsh's  counting-house  August  3,  1803.  Its 
minute    records  that  "a  number  of  gentlemen,  having  met 


Its  Organization  23 

together  and  considered  the  propriety  of  establishing  a  Bank 
in  this  City,  to  be  called  the  Philadelphia  Bank,  on  a  plan 
nearly  similar  to  the  Merchants'  Bank  in  New  York,  drew  up 
articles  of  an  association  which  they  caused  to  be  printed,  with 
a  blank  for  the  names  of  the  gentlemen  to  serve  as  Directors 
till  the  second  Tuesday  of  November,  1804."  They  filled  the 
blank  with  the  names  of  the  following  sixteen  gentlemen: 
George  Latimer,  James  Smith,  Jacob  Gerard  Koch,  John 
Welsh,  Daniel  W.  Coxe,  John  Gardiner,  Jr.,  Samuel  Meeker, 
John  Warder,  Elisha  Kane,  Paul  Beck,  Jacob  Sperry,  Samuel 
Eldridge,  John  Maybin,  Matthew  Lawler,  Louis  D.  Carpentier, 
and  William  Guier.  Then  they  opened  a  subscription  book 
with  a  copy  of  the  articles  prefixed,  and  it  "was  immediately 
signed  by  a  considerable  number  of  persons,  after  which  they 
adjourned  to  the  6th  instant,  at  4  o'clock  p.  M.  at  the  City 
Tavern."  The  subsequent  meetings  were  mostly  held  at  the 
old  City  Tavern,  Second  Street  above  Walnut,  then  called 
the  Merchants'  Coffee  House,  until  the  Bank  got  possession  of 
its  own  building. 

ITS  ORGANIZATION 

The  articles  of  association  are  dated  August  6,  1803,  and 
are  signed  by  one  hundred  and  ninety-eight  individuals  and 
firms,  the  first  signature  being  that  of  George  Clymer,  and  the 
second,  John  Welsh.  They  fixed  the  capital  at  $1,000,000, 
divided  into  shares  of  $100  each — ten  dollars  on  each  share  to  be 
paid  at  the  time  of  subscribing,  and  the  remainder  as  the  Board 
of  Directors  should  order,  on  at  least  fifteen  days  published 
notice  in  the  newspapers.  The  articles  described  the  organiza- 
tion as  "a  company  or  limited  partnership,"  created  a  board  of 
sixteen  directors,  of  which  nine,  the  president  always  to  be  one, 
shall  form  a  quorum  for  transacting  business,  while  ordinary 
discounts  may  be  done  by  the  president  and  any  five  of  the 


24  The  Philadelphia  Bank 

directors;  declared  the  liability  of  the  stockholders  should 
not  be  individual,  but  limited  only  to  the  joint  stock  or  prop- 
erty of  the  company ;  and  described  at  length  the  nature  of  the 
business  and  the  power  of  the  officers  and  of  the  board. 

On  August  6th,  pursuant  to  adjournment,  eight  of  the  per- 
sons named  as  directors  met  at  the  City  Tavern,  and  made 
Matthew  Lawler,  chairman,  and  Samuel  Ivleeker,  secretary. 
Matthew  Lawler  w^as  the  Mayor  of  Philadelphia  at  the  opening 
of  the  nineteenth  century,  and  was  then  serving  his  third  annual 
term.  He  had  been  a  hero  of  the  Revolutionary  War,  and 
the  commander  of  privateers  sailing  from  Philadelphia  that 
made  numerous  British  captures.  Samuel  Meeker  was  a  lead- 
ing merchant,  of  the  firm  of  Meeker,  Denman  &  Co.  The 
meeting  ordered  the  subscription  book  to  be  opened  at  the 
City  Tavern,  on  Monday,  August  8th,  at  lo  o'clock  A.  m.,  and 
appointed  Matthew  Lawler,  William  Guier,  and  John  Welsh  a 
committee  to  procure  "a  suitable  house"  for  the  Bank.  The 
subscription  book  was  opened  on  the  8th,  and  at  the  board 
meeting  subsequently,  on  that  day,  it  was  found  that  the  sub- 
scription had  been  more  than  filled,  whereupon  to  bring  the 
number  of  shares  within  the  limit,  a  resolution  was  passed 
reducing  by  15  per  cent,  all  subscribers  for  over  twenty  shares. 
The  first  instalment  of  $10  per  share  was  also  called,  payable 
the  next  day.  On  that  day,  and  daily  thereafter,  a  committee 
met  to  receive  the  instalment,  and  during  the  ensuing  three 
days  there  were  $82,690  paid  in. 

The  subscription  list  had  scarcely  been  filled  when  op- 
ponents of  the  project  began  dissuading  merchants  and  others 
from  paying  up  their  subscriptions,  and  were  also  particularly 
zealous  in  the  effort  to  prevent  some  of  those  who  had  been 
selected  as  directors  from  serving  on  the  board.  The  result 
was  that  quite  a  number  neglected  to  pay  the  instalment,  and 
several  of  the  directors  did  not  appear  at  the  meetings.     But 


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Its  Organization  25 

those  at  the  head  of  the  movement  meant  business,  and  they 
very  quickly  remedied  this.  They  gave  public  notice  to  the 
subscribers  to  pay  their  instalments  on  August  nth,  when  all 
those  neglecting  to  pay  would  be  considered  as  having  aban- 
doned their  shares,  and  they  also  convened  the  stockholders  on 
that  day  to  fill  the  vacancies  in  the  board.  Then  on  August 
12th  the  board  met,  and,  1351  shares  not  being  taken,  they  ac- 
cepted the  offer  of  John  Welsh  and  five  other  directors  to  take 
the  whole  amount,  and  declared  the  subscription  list  closed. 
Of  the  sixteen  directors  originally  selected,  eight  served  and 
eight  withdrew,  and  the  list  of  sixteen  as  finally  entered  in  the 
articles  of  association  was:  George  Clymer,  John  Welsh,  John 
Gardiner,  Jr.,  Samuel  Meeker,  Elisha  Kane,  Jacob  Sperry, 
Matthew  Lawler,  Louis  D.  Carpentier,  William  Guier,  Joseph 
D.  Drinker,  John  Bohlen,  William  Haslett,  Jacob  Shoemaker, 
Abraham  M.  Garrigues,  Alexander  Cranston,  and  Joseph 
Clark. 

On  August  12th  the  board  also  resolved  to  elect  a  president 
pro  tern,  from  among  the  directors,  "who,  it  is  understood, will 
feel  a  pleasure  to  resign  his  office  in  favor  of  a  permanent 
president,  whenever  such  person  may  be  fixed  upon."  Jacob 
Shoemaker  was  elected  president  pro  tempore.  They  continued 
daily  meetings;  deposited  their  money  in  a  box  placed  in  the 
care  of  the  Pennsylvania  Bank;  authorized  the  receipt  of 
bank  notes  for  checks  given  for  subscriptions;  gave  the  sub- 
scribers to  the  residue  of  the  stock  ample  time  to  pay  their  in- 
stalments; ordered  a  committee  to  procure  "a  proper  set  of 
books,  stationery,  scales,  weights,  shovels  and  other  materials" 
for  the  Bank,  to  procure  the  form  of  the  several  notes  to  be 
issued,  also  a  person  to  engrave  them ;  and  appointed  another 
committee  "to  draft  rules  and  regulations  for  the  government 
of  the  Institution." 

Upon  August  1 6th  the  board  arranged  for  the  permanent 


26  The  Philadelphia  Bank 

location  of  the  Bank.  They  confirmed  an  agreement  made  by 
John  Welsh  for  the  Bank,  and  Joseph  Pemberton,  by  which 
the  latter  agreed  "to  let  to  the  President  and  Directors  of  the 
Philadelphia  Bank,  the  House  opposite  the  Bank  of  North 
America,  which  I  now  live  in,  for  two  yesLVs  at  the  rate  of  five 
hundred  pounds  per  year,  payable  quarterly,  giving  them  the 
privilege  of  buying  said  house  and  lot  at  any  time  within  the 
two  years  for  fifteen  thousand  dollars,  which  I  engage  to  sell 
them,  clear  of  every  encumbrance."  Thus  the  embr3''o  bank 
took  its  first  option,  which,  however,  was  never  exercised,  the 
Bank  going  elsewhere.  The  work  of  fitting  up  the  house  for 
the  Bank  began  at  once.  The  site  of  this  house  is  now  part 
of  the  property  of  the  Girard  Estate,  on  which  the  IMariner 
and  Merchant  Building  is  erected.  The  next  day  twelve  direc- 
tors attended  the  board  meeting,  and  four  candidates  were 
nominated  for  cashier,  and  James  Todd  elected,  his  salary 
being  fixed  at  $2,000  and  $50,000  security  being  required. 
Mr.  Todd  continued  as  cashier  until  November  7,  1805.  The 
board  also  fixed  the  following  salaries  of  the  other  officers  and 
clerks:  President,  $1,750;  first  teller,  $800;  second  teller,  $700; 
bookkeeper  and  discount  clerk,  each,  $600;  note  and  transfer 
clerk,  $500;  runner,  $500;  porter,  $250;  and  two  watchmen 
each  $12  per  month.  The  tellers  and  notary  were  each  to 
provide  $15,000  security;  the  bookkeepers  and  clerks,  each 
$5,000;  and  the  runner,  $3,000.  The  board  also  called  in  the 
second  instalment  on  the  stock  of  $10  per  share,  payable 
September  7,  1803,  and  informed  stockholders  paying  in  full 
"that  they  will  be  entitled  to  a  dividend  on  the  whole  amount 
paid  in." 

The  Bank  was  now  completely  organized,  except  the 
selection  of  the  president,  which  was  made  upon  the  following 
day,  August  i8th,  when  George  Clymer  was  elected  as  a 
director,  and  immediately  thereafter  was  unanimously  elected 


Its  Organization  27 

president  of  the  Philadelphia  Bank,  continuing  to  hold  the 
office  until  his  death,  January  23,  1813.  Mr,  Clymer  was  a 
prominent  Philadelphian,  and  was  born  in  the  city  in  1739. 
He  early  took  a  leading  part  in  the  cause  of  the  Colonies  against 
the  aggression  of  the  Crown,  and  in  1773  was  a  leader  among 
those  who  resisted  the  sale  of  taxed  tea.  When  the  war  began, 
he  subscribed  liberally  to  the  loans  of  the  Continental  Congress, 
and  was  elected  a  delegate  to  the  Congress  in  1776,  in  place  of 
one  of  the  Pennsylvania  members  who  had  refused  to  vote  for 
independence.  He  signed  the  Declaration  of  Independence, 
though  not  present  at  its  adoption.  He  was  again  elected  to 
the  Congress  in  1780,  and  was  a  member  from  Pennsylvania 
in  the  convention  forming  the  Federal  Constitution  in  1787. 
He  was  the  founder  of  the  Pennsylvania  Agricultural  Society, 
and  was  also  President  of  the  Academy  of  the  Fine  Arts  at  the 
time  of  opening  its  first  building.  In  his  later  years  he  was 
infirm  and  much  indisposed,  and  died  at  ^lorrisville,  Bucks 
County,  his  country  residence,  January  23,  1813.  His  portrait 
was  afterward  placed  as  a  vignette  on  the  Philadelphia  Bank 
notes. 

The  board,  after  concluding  its  business  on  August  19th, 
adjourned  to  meet  at  "The  Philadelphia  Bank"  on  Monday, 
August  2  2d,  and  on  that  date  the  bank  building  was  occupied 
for  the  first  time.  The  minutes  taken  for  August  2  2d  are 
headed  "Philadelphia  Bank,"  and  George  Clymer  then  took 
his  seat  as  president.  At  several  subsequent  meetings  the  pre- 
liminaries were  arranged  and  completed  for  opening  the  Bank. 
The  cashier  was  instructed  to  have  a  room  prepared  in  the 
building  for  the  note  engraver  to  work  in,  and  the  bank  note 
plates  were  to  be  kept  in  his  care ;  the  first  printing  of  circulating 
notes  v/as  ordered,  $30,000  fives  and  $60,000  tens,  with  subse- 
quently $24,000  twenties;  the  remaining  instalments  on  the 
stock  were  called  in  sums  of  ten  dollars  per  share,  payable 


28  The  Philadelphia  Bank 

at  intervals,  the  last  one  being  due  December  20th;  the  By- 
Laws  were  adopted;  and  the  first  death  of  a  director  was  re- 
corded, John  Clark  (who  had  been  chosen  only  ten  days  pre- 
viously), Joseph  Clark  being  elected  in  his  place,  August  29th. 

The  payment  of  the  second  instalment  on  the  stock  was 
announced  September  14th,  with  but  one  delinquent,  several 
stockholders  making  full  payment  and  $115,480  being  received. 
The  Bank  now  had  nearly  $200,000  in  cash,  and  was  ready  for 
business.  Accordingly,  on  September  14th,  the  Board  au- 
thorized the  officers  to  issue  $50,000  of  the  bank  notes,  and  at 
the  same  time  arranged  for  the  first  loan.  This  was  done  by  a 
resolution  that,  out  of  the  issue,  notes  to  the  amount  of  $4,000 
or  any  less  sum  be  emitted  to  Samuel  Meeker,  on  his  giving  his 
note,  endorsed  by  Meeker,  Denman  &  Co.,  at  sixty  days. 
They  ordered  ''that  the  Bank  will  be  opened  to  receive  de- 
posits of  money  and  for  the  transaction  of  business  generally  on 
Monday  next,  the  19th  instant;  Bank  hours  for  business  from 
9  A.  M.  to  3  p.  M. "  They  also  ordered  "  that  Stock  of  this  Bank, 
transferred  to  the  President  in  trust,  shall  be  considered  equal 
to  an  endorser,  valuing  the  same  at  par";  thus  first  establishing 
the  basis  for  collateral  loans.  The  preliminaries  being  all 
arranged,  the  Philadelphia  Bank  opened  for  public  business 
September  19,  1803,  at  9  o'clock  a.  m.,  and  that  was  the  first 
regular  discount  day.  Mondays,  Wednesdays,  and  Fridays  were 
fij^ed  as  the  discount  days. 

The  official  staff  of  the  Bank  at  the  opening  was:  First 
teller,  Quintin  Campbell;  second  teller,  Moses  Musgrave; 
first  bookkeeper,  E.  Salomon;  second  bookkeeper,  Samuel 
Field;  discount  clerk,  Thomas  F.  Gamble;  note  and  transfer 
clerk,  John  Neal;  notary,  Nicholas  Diehl;  runner,  Francis  G. 
Deimling;  and  watchmen,  Joseph  Carroll,  and  Robert  Bayne. 

The  Bank  soon  afterward  began  correspondence  with 
banks  in  other  cities  relative  to  opening  accounts  and  the 


Its  Charter  29 

exchange  of  notes,  and  the  president  reported  on  October  5th 
that  he  had  written  on  this  subject  to  the  presidents  of  several 
banks  in  New  York  and  elsewhere.  From  this  came  the 
opening  of  an  account  in  the  Merchants'  Bank  of  New  York, 
of  which  Oliver  Wolcott  was  president.  This  account  has  been 
continuous  ever  since,  and  it  was  the  first  account  opened  by 
any  bank  for  deposit  in  the  Merchants'  Bank,  which  had  begun 
business  the  previous  June,  its  organization  articles  having 
been  drawn  by  Alexander  Hamilton,  and  its  plan  being  re- 
produced in  the  formation  of  the  Philadelphia  Bank.  The 
minutes  of  October  7,  1803,  of  the  Merchants'  Bank,  record 
that  a  letter  was  read  from  the  president  of  the  Philadelphia 
Bank  to  President  Wolcott,  proposing  the  establishment  of  a 
mutual  credit  and  a  mutual  reception  of  notes,  and  that  it  was 
referred  to  the  cashier.  The  cashier  made  his  report  on  October 
12th,  whereupon  the  board  instructed  the  president  to  inform 
the  president  of  the  Philadelphia  Bank  that  they  accepted  the 
proposal,  and  that  the  notes  of  the  Philadelphia  Bank  be  at  all 
times  received  in  payment  and  deposit.  There  also  began  at 
that  time,  from  the  correspondence,  relations  with  the  Bank 
of  New  York,  and  the  Manhattan  Company,  also  of  New 
York,  that  have  since  continued.  The  cashier  was  instructed 
to  receive  on  deposit  the  notes  of  the  banks  of  New  York, 
Baltimore,  and  Delaware.  Business  became  very  active,  and 
the  officers  and  directors  during  the  autumn  had  much  to  do, 
while  the  prospects  were  so  good  that  the  price  of  full-paid 
shares  soon  advanced  to  $130. 

ITS  CHARTER 

The  Philadelphia  Bank  was  opened  as  an  ordinary  busi- 
ness partnership,  and  it  soon  developed  rivalries  and  enemies. 
The  effort  from  the  first  was  to  conduct  business  as  much 


30  The  Philadelphia  Bank 

to  the  satisfaction  and  convenience  of  customers  as  possible. 
The  new  Bank  had  begun  the  issue  of  notes,  and  also  received 
the  notes  of  the  other  banks  in  the  city  and  paid  them  out. 
But  the  very  first  day  all  the  other  banks  declined  to  receive 
the  Philadelphia  Bank  notes,  and  at  the  next  board  meeting, 
September  21st,  a  resolution  was  passed  "That  so  long  as 
the  Banks  of  the  United  States,  Pennsylvania,  and  North 
America  continue  to  refuse  the  notes  of  this  Bank,  that  the 
Cashier  apply  every  day  to  the  said  Banks  for  Specie  in  ex- 
change for  such  of  their  notes  as  may  be  on  hand  in  this 
Bank."  This  soon  worked  a  cure,  for  specie  was  then  a 
very  scarce  article,  the  constant  tendency  of  the  international 
exchanges  being  to  cause  merchants  to  collect  it  for  export 
to  Europe,  rather  than  pay  high  premiums  for  exchange. 
The  other  banks  after  a  little  while  became  more  friendly, 
and  took  the  notes  of  the  new  Bank.  The  Pennsylvania 
Bank,  however,  seems  to  have  been  intractable.  There  is 
a  very  early  record  ordering  the  cashier  to  take  the  sealed 
box  containing  the  money  of  this  Bank  out  of  the  Penn- 
sylvania Bank  and  place  it  in  the  Bank  of  the  United  States. 
Other  minutes  show  instructions  to  the  cashier  to  "have 
all  the  notes  on  hand  of  the  Pennsylvania  Bank  exchanged 
for  specie."  The  notes  of  other  banks,  especially  those  at 
a  distance,  were  also  a  constant  source  of  trouble,  on  account 
of  the  difficulty  of  securing  their  redemption,  which  often 
put  them  at  a  heavy  discount.  There  is  a  record  showing 
an  order  to  the  cashier,  early  in  1804,  to  discontinue  the 
receipt  of  notes  to  the  southward  of  Alexandria,  and  to  the 
eastward  and  northward  of  New  York. 

After  business  had  proceeded  nearly  a  month  with  con- 
siderable success,  it  was  decided  to  procure  a  charter  from 
the  Legislature  of  Pennsylvania.  On  October  loth  a  com- 
mittee was  appointed   to  consider  the  matter,   and   on   the 


Its  Charter  31 

2ist  they  reported  favorably,  and  the  board  agreed  upon 
a  paper  to  be  submitted  to  the  stockholders  for  signature. 
This  paper  expressed  the  belief  that  "it  might  benefit  our 
association  to  have  it  known  as  a  body  legally  incorporated," 
and  the  desire  "that  the  same  may  be  done,"  and  to  this 
end  authorized  the  directors  to  "make  suitable  application 
in  our  name  to  the  General  Assembly  at  their  ensuing  Session." 
The  document  gave  them  full  power  and  declared  "the  new 
Constitution  so  to  be  obtained  to  be  of  binding  force  on  us 
without  our  subsequent  ratification." 

The  petition  to  the  General  Assembly  was  prepared  and 
adopted  on  December  9,  1803.  It  announced  "That  your 
petitioners,  Citizens  generally  of  Pennsylvania,  associating 
for  the  purpose,  have  opened  a  Bank  of  Discount  and  Deposit 
in  the  City  of  Philadelphia,  under  the  accompanying  Articles"; 
gave  the  reasons  therefor,  and  the  strong  arguments  favoring 
the  establishment  of  banks  as  "very  powerful  instruments 
of  the  public  good,"  and  "fit  objects  of  legislative  favor  and 
protection."  It  stated  in  reference  to  the  Philadelphia  Bank 
"that  from  its  Capital  being  thrown  into  easy  portions,  many 
of  the  less  opulent  members  of  the  community  are  suffered 
to  be  partakers  in  it;  and  that  its  accommodations  have  been 
and  are  meant  to  be  extended  to  a  more  varied  description 
of  persons  than  such  as  are  generally  admitted  to  the  benefit 
of  Banks."  It  concluded  with  the  prayer  that  the  petitioners 
therefore  "respectfully  apply  to  the  General  Assembly  for 
an  Act  to  incorporate  them  under  their  assumed  name  of 
the  President,  Directors  and  Company  of  The  Philadelphia 
Bank." 

A  Committee  was  on  that  date  appointed  "to  proceed 
to  Lancaster  in  order  to  attend  our  petition  to  the  Legislature 
for  an  Act  to  incorporate  the  Bank."  This  committee  con- 
sisted of  Israel  Israel,  Samuel  Meeker,  John  Welsh,  Jacob 


32  The  Philadelphia  Bank 

Sperry,  and  Michael  Bright,  and  three  days  later  Lewis  Rush 
was  added.  Messrs.  Israel,  Bright,  and  Rush  had  been 
chosen  directors  after  the  opening,  to  fill  vacancies  in  the 
board.  The  committee  went  to  Lancaster  immediately,  and 
Alexander  James  Dallas,  who  had  been  employed  as  counsel 
to  draft  the  charter,  presented  it  at  the  meeting  December 
1 2th,  when  it  was  read  and  in  some  parts  amended,  and 
sent  to  the  committee  at  Lancaster.  A  subsequent  minute 
shows  that  in  the  following  May,  Mr.  Dallas  was  paid  a  fee 
of  S8o  for  his  services,  and  that  Messrs.  Tilghman  and  Levy, 
subsequently  asked  for  their  opinion  and  for  services  con- 
nected with  the  incorporation  of  the  Bank,  were  jointly  paid 
$120. 

No  sooner  had  the  bill  for  a  charter  been  introduced  in 
the  Legislature  than  it  met  with  opposition.  The  committee 
wrote  about  this  to  the  board,  and  the  directors,  December 
1 6th,  adopted  a  resolution  that  the  committee  be  ''authorized 
to  negotiate  with  the  Legislature  for  a  Charter  to  this  In- 
stitution," and  a  letter  of  instructions  signed  by  the  president 
was  sent  to  the  committee.  A  few  days  later  the  committee 
returned  to  Philadelphia,  verbally  reported  the  character 
of  the  opposition  and  the  progress  made,  and  on  December 
22d  it  was,  ''Resolved,  as  the  sense  of  this  Board,  that  the 
Committee  appointed  to  attend  the  Legislature  with  our 
petition  for  an  act  of  incorporation,  have  by  their  diligence 
and  attention  to  the  object  of  their  mission,  justly  entitled 
themselves  to  the  thanks  of  this  Board,  and  that  the  same 
be  entered  on  our  ]Minutes  as  a  standing  memorial  of  our 
high  approbation  of  their  conduct."  Then  the  board  ap- 
pointed Messrs.  Meeker,  Israel,  and  Sperry,  together  with 
the  President,  a  "Committee  for  further  presenting  the  object 
of  our  petition  to  the  Legislature." 

The  opposition  was  made  by  other  banks,  of  which  the 


Its  Charter  33 

Bank  of  Pennsylvania  was  the  chief.  The  State  of  Penn- 
sylvania was  then  in  great  straits  for  money,  there  were  several 
members  of  the  Legislature  opposed  to  all  banks  whatever, 
and  it  was  found  that  the  charter  could  not  be  obtained  without 
paying  the  State  for  it.  The  committee  began  negotiations, 
and  offered  to  give  a  round  price  for  the  charter.  Imme- 
diately the  Bank  of  Pennsylvania  sent  its  memorial  to  the 
Legislature  opposing  the  charter,  which  was  read  at  the 
board  meeting  of  the  Philadelphia  Bank,  December  31st, 
and  on  that  date  a  memorial  in  reply  thereto  was  approved, 
and  signed,  and  sent  to  Lancaster  to  present  to  the  Legisla- 
ture. The  controversy  was  protracted  and  violent,  both 
sides  offering  inducements  to  the  State,  and  the  Pennsylvania 
Bank  offered  to  pay  into  the  State  Treasury  $200,000  pro- 
vided no  new  bank  should  be  incorporated. 

The  Philadelphia  Bank  won,  however,  and  late  in  February, 
1804,  the  bill  for  the  charter  passed  the  Legislature.  Upon 
February  27th  a  copy  of  the  Act  arrived  from  Lancaster,  and 
Messrs.  Kane  and  Welsh  were  appointed  a  committee  to 
consult  the  counsel  relative  to  its  provisions,  and,  their  opinion 
being  subsequently  received,  the  terms  of  the  Act  were  ap- 
proved and  the  Governor,  Thomas  McKean,  so  notified,  and 
on  INIarch  5,  1804,  he  approved  the  Act  and  it  became  law. 
It  incorporated  the  Philadelphia  Bank,  to  continue  until 
the  first  day  of  May,  18 14,  the  capital  stock  not  to  exceed 
$2,000,000,  of  which  $1,000,000,  in  shares  of  $100  each,  was 
to  be  held  by  the  proprietors  thereof  at  the  time  of  the  passing 
of  the  Act.  There  were  to  be  twenty- two  directors,  of  whom 
three  were  to  be  elected  by  the  State  Senate,  and  three  by 
the  House  of  Representatives,  with  further  provision  for  two 
more  State  directors  in  case  the  State  made  certain  stock 
subscriptions.  The  annual  election  of  directors  was  fixed 
for  the  second  Monday  in  February,  "by  the  Stockholders 
3 


34  The  Philadelphia  Bank 

residing  within  the  United  States,  and  none  others  shall 
be  capable  of  holding  Stock  in  The  Philadelphia  Bank." 
The  voting  right  was  limited  so  that  no  stockholder,  no  matter 
what  might  be  the  holding  of  shares,  had  over  thirty  votes, 
either  in  his  own  right  or  as  a  proxy.  The  dividend  periods 
were  in  March  and  September,  and  at  the  expiration  of  every 
three  years  a  dividend  of  surplus  profits  was  to  be  made,  but 
the  Directors  were  at  liberty  to  retain  at  least  one  per  cent,  on 
the  capital  as  a  fund  for  future  contingencies.  The  notes 
of  the  Bank  were  made  receivable  in  payments  from  the 
Bank  to  the  State  of  Pennsylvania,  and  the  outstanding 
notes  and  all  other  debts  were  limited  to  double  the  capital. 

The  Bank  had  to  pay  enormously  for  the  charter.  It 
gave  the  State  as  a  gratuity  the  very  large  sum,  for  that  time, 
of  $135,000,  which  was  to  be  immediately  passed  to  the  credit 
of  the  State,  and  drawn  out  by  the  State  Treasurer,  "as  the 
exigencies  of  the  State  may  require."  It  allowed  the  State 
to  immediately  subscribe  for  $300,000  capital  stock  at  par, 
receiving  therefor  $300,000  of  United  States  six  per  cent, 
loan,  then  selling  at  a  discount.  It  further  gave  the  State 
the  privilege  at  the  end  of  four  years  of  subscribing  $200,000 
more  capital  stock  at  par,  and  at  the  expiration  of  eight  years, 
a  second  $200,000  capital  stock  at  par.  The  Bank  also 
agreed,  whenever  the  Legislature  should  require  it,  to  loan 
the  State  a  sum  not  exceeding  $100,000  at  not  over  five  per 
cent,  annual  interest  for  ten  years  or  less.  The  discount 
on  the  United  States  loan  amounted  to  $10,126,  so  that  the 
charter  cost  the  bank  $145,126,  and,  in  addition,  the  State 
made  a  profit,  through  the  premiums  on  the  Bank  stock 
subscribed,  amounting  to  $90,000.  The  cost  of  the  charter, 
$145,126,  was  carried  on  the  books  of  the  Bank  for  many 
years,  though  a  transfer  was  made  out  of  the  profits  at  stated 
periods  to  offset  it,  through  the  operations  of  a  sinking  fund. 


Its  Charter  35 

This  method  of  recouping  was  authorized  by  a  supplementary 
Act  of  the  Legislature  in  January,  1805,  giving  the  Bank 
seven  years  in  which  to  do  it. 

Paying  for  charters  was  customary  in  those  days,  and 
the  Legislative  records  show  various  offers  by  applicants  in 
the  nature  of  remuneration.  The  Farmers'  and  Mechanics' 
Bank,  which  was  founded  in  February,  1807,  after  several 
unsuccessful  applications,  making  various  proposals  of  ad- 
vantage to  the  State,  was  the  next  bank  chartered  in  Phila- 
delphia, on  March  16,  1809,  the  charter  running  until  May 
I,  1824.  The  State  was  given  $75,000  in  the  capital  stock 
for  the  privilege,  and  it  was  provided  that  one-tenth  of  the 
capital  of  $1,250,000  should  be  loaned,  if  applied  for,  to  the 
farmers  of  the  State,  on  sufficient  security,  by  bond,  mortgage, 
or  note.  The  charter  of  the  Pennsylvania  Bank  was  renewed 
in  1 8 10,  for  twenty-one  years  after  its  expiration,  on  condi- 
tion that  the  State  could  subscribe  at  various  periods  for 
twenty-five  hundred  shares  of  the  capital  stock  at  par.  The 
Bank  of  North  America  got  its  charter  extended,  which 
expired  in  1814,  by  giving  the  State  a  gratuity  of  $120,000. 

These  conditions  imposed  on  banks  and  other  corporations 
became  so  onerous  that  a  Legislative  Committee  was  ap- 
pointed to  examine  the  banks  of  Philadelphia  and  inquire 
into  the  matter.  It  reported,  in  January,  181 2,  that  ''The 
Philadelphia  Bank  labored  under  the  disadvantage  of  paying 
more  for  her  charter  than  any  of  her  Sister  Institutions."  In 
March,  1806,  the  Philadelphia  Bank  charter  was  extended 
ten  years,  until  May  i,  1824,  and  the  whole  period  until  that 
date  was  given  for  making  good  the  gratuity  paid  for  the 
original  charter.  For  this  extension  the  Bank  allowed  the 
State  to  immediately  subscribe  $100,000  in  the  capital  stock 
at  par. 

This  interesting  history  shows  that  the  original  opposition 


36  The  Philadelphia  Bank 

to  the  Philadelphia  Bank  had  thus  established  a  custom  in 
Pennsylvania  of  paying  the  State  for  charters.  The  irony 
of  fate,  however,  overtook  the  Pennsylvania  Bank,  which 
was  the  cause  of  it.  After  more  than  a  half-century  had 
elapsed,  from  the  time  of  the  conflict,  the  Pennsylvania  Bank 
suspended  in  the  financial  panic  of  1857.  It  had  then  just 
completed  a  fine  new  Quincy  granite  banking  house,  on 
Chestnut  Street,  which,  still  unoccupied,  was  sold  at  auction, 
and  bought  for  the  Philadelphia  Bank,  and  is  its  present 
banking  house.     Thus  time  makes  all  things  even. 

To  properly  conclude  this  branch  of  the  subject,  it  should 
be  stated  that  all  the  applicants  for  bank  charters  in  Penn- 
sylvania finally  got  together,  and  in  18 13  passed  an  omnibus 
bill  to  charter  twenty-five  banks  with  $9,525,000  capital, 
which  Governor  Snyder,  on  receipt  of  the  Act  from  the  Legisla- 
ture, promptly  vetoed.  In  March,  1814,  they  again  passed 
their  bank  bill,  taking  in  other  interests,  so  that  it  chartered 
forty-two  banks  with  over  $17,000,000  capital,  three  of  the 
banks  being  in  Philadelphia  city,  and  two  others  in  Phila- 
delphia county.  Governor  Snyder  also  vetoed  this  Act,  but 
its  advocates  had  made  their  arrangements  so  completely 
that  it  was  passed  over  the  veto  and  became  a  law.  The 
legislative  historian  gravely  records  that  thirty-seven  of  these 
banks  went  into  operation,  and  within  five  years  fifteen  had 
failed. 

ITS  BUSINESS  PROGRESS 
The  Philadelphia  Bank  being  now  an  incorporated  institu- 
tion, its  business  favorably  progressed.  Its  note  issues,  hereto- 
fore only  fives  and  tens,  were  enlarged.  The  board  ordered 
printed  $16,000  in  twenty-dollar  notes,  $20,000  in  fifties,  and 
$40,000  in  hundreds.  They  also  ordered  a  morning  and  an 
evening  newspaper  to  be  taken,  the  "Aurora"  and  "Relf's," 


lpiTom\8e  lo  \uvvi  Ten   DoWavs  Vo  ;-!-  -^^ 

^^^,  #^2,  '^y!^~^^^^^  OT  Beaver   ou  denvawd.  ^{^^^^^^i; 


J^.f^^j-^y     «i3^s<»_  '^ 


For  the    PHILADELPHIA    BANK 


^^M— 


^ 


^/e..' 


EARI,Y   BANK   NOTES,    1810-1816-1819,   WITH   OFFICERS'   SIGXATURES. 
(reduced  size.) 


Its  Business  Progress  37 

and  that  a  copy  of  the  ^'Commercial  Dictionary  printed  by 
Humphries"  be  obtained  for  the  Bank.  They  decided  upon 
the  first  dividend,  and  on  March  9,  1804,  adopted  a  resolution 
"that  a  dividend  of  the  net  profits  of  the  Bank  be  made,"  and 
appointed  Mr.  Welsh  and  Mr.  Guier  a  committee  to  prepare 
a  statement  for  that  purpose.  There  was,  however,  opposition 
to  this,  and  one  director  had  the  fact  of  his  dissent  entered 
upon  the  minutes.  The  next  day  the  statement  was  received 
and  the  board  declared  the  dividend,  which  was  to  be  made 
on  March  19th,  "at  the  rate  of  three  per  cent,  for  the  half- 
year,  on  the  instalments  constituting  the  present  Capital  of 
the  Bank,  $1,000,000."  By  subsequent  action  the  dividend 
was  made  payable  at  the  end  of  ten  days  after  March  19th. 

The  official  copy  of  the  charter  was  received  March  17th, 
and  on  the  previous  day  a  committee  had  been  appointed 
to  confer  with  the  Governor,  as  to  the  manner  of  carrying 
into  effect  its  provisions  in  reference  to  the  State.  This 
committee  having  attended  to  the  duty,  the  Bank,  on  March 
23d,  passed  $135,000  to  the  credit  of  the  State  Treasurer, 
sent  him  a  bank-book  with  the  amount  entered,  and  ordered 
"that  the  Cashier  request  of  him  to  be  informed  at  what 
period  the  exigencies  of  the  State  will  probably  require  pay- 
ment of  the  money,  the  Directors  being  anxious  to  make 
the  accommodations  to  the  State  as  large  as  possible  at  this 
time  of  unprecedented  scarcity."  Upon  April  12th,  Governor 
Thomas  McKean  appeared  in  the  Bank  and  subscribed  for 
the  three  thousand  shares  of  capital  stock  for  the  State  of 
Pennsylvania,  and  his  subscription  is  entered  in  the  minute- 
book.  The  United  States  loan  was  transferred  to  the  Bank 
in  payment  for  the  stock,  and,  the  transaction  being  com- 
pleted, the  six  directors  elected  by  the  State  subsequently 
took  seats  in  the  Board,  which  then  increased  the  Bank's 
capital  to  $1,300,000.     The  United  States  loan  was  held  by 


38  The  Philadelphia  Bank 

the  Bank  until  1806,  when  it  was  sold.  The  State  in  1806 
subscribed  one  thousand  more  shares  of  the  stock,  and  at 
various  times  in  1807-09  another  one  thousand  shares,  and 
the  Bank's  capital  was  finally  enlarged  to  $1,800,000,  of 
which  the  State  held  $523,300,  continuing  to  be  a  stockholder 
until  1843. 

The  assets  of  the  Bank  had  been  steadily  growing,  and 
in  April,  1804,  appears  the  first  statement  which  gives  any 
record  of  them.  A  committee  was  appointed  to  count  the 
cash,  and  it  reported,  April  i6th,  that  the  amount  of  all  kinds 
of  money  in  the  Bank  was  $227,421.54,  and  on  April  25th 
the  notes  and  bills  discounted  were  examined,  and  reported 
to  agree  with  the  amount  on  the  books,  $1,127,873.21.  Busi- 
ness was  enlarging,  and  it  was  found  necessary  to  employ 
an  assistant  to  the  clerk  who  had  charge  of  the  circulating 
notes,  and  also  another  porter,  and  each  teller  was  given 
a  porter  as  assistant.  A  general  advance  in  salaries  was 
made  April  27th,  as  follows:  President,  $2,000;  cashier,  $2,250; 
first  teller,  $1,000;  second  teller,  $900;  first  bookkeeper, 
$750;  second  bookkeeper,  $650;  discount  clerk,  $700;  transfer 
and  note  clerk,  $600;  assistant  clerk,  $400;  runner,  $600; 
first  porter,  $400;  and  second  porter,  $350. 

The  Bank  was  prospering  and  accumulating  funds.  The 
cash  held  in  July  was  reported  at  $443,157.91.  On  July 
16,  1804,  the  Bank  loaned  the  city  of  Philadelphia  $10,000, 
and  this  loan  was  again  made  September  27,  1805,  on  ap- 
plication of  the  Mayor,  on  pledge  of  the  taxes,  to  be  repaid 
in  $500  instalments  as  they  were  collected,  the  corporation 
note  renewable  every  sixty  days.  The  business  of  the  various 
banks  in  the  city  with  each  other  becoming  greater,  there 
appears  in  September,  1804,  a  record  which  indicates  the 
first  germ  of  a  Clearing  House  Committee.  A  committee  was 
then  appointed  ''to  confer  occasionally  with  Committees  of 


Early  Banking  Methods  39 

the  other  Banks  in  this  City,  when  appointed,  upon  subjects 
of  a  common  interest,  and  for  the  purpose  of  maintaining 
harmonious  intercourse  between  them."  The  second  bank 
dividend  was  declared  September  19th,  at  the  rate  of  3^  per 
cent.  This  caused  serious  discussion,  owing  to  the  doubts 
arising  from  the  effect  of  the  gratuity  paid  the  State  in  im- 
pairing the  capital,  and  seven  directors  noted  their  dissent 
in  a  protest  entered  upon  the  minutes.  Subsequent  legisla- 
tion cured  this  defect,  and  the  Bank  continued  making  semi- 
annual dividends,  increasing  the  rate  gradually  to  four  per 
cent.  Up  to  and  including  18 10,  the  dividends  aggregated 
41  per  cent. 

The  dependence  of  banks  upon  legislative  favors  is  shown 
by  the  way  in  which  subscriptions  were  made  to  various 
turnpike  and  bridge  companies  constructing  public  works  in 
the  interior.  At  the  request  of  Governor  Thomas  McKean, 
the  bank  took  ten  shares  in  a  new  turnpike  from  the  Lehigh 
River  over  the  Alleghenies  to  Nescopeck  Falls  on  the  Sus- 
quehanna. It  subscribed  stock  in  turnpikes  in  Berks,  Dau- 
phin, Lancaster,  Chester,  and  York  Counties;  took  shares 
in  the  company  building  a  bridge  across  the  Susquehanna 
at  Columbia,  loaned  $10,000  to  the  Easton  Delaware  Bridge 
managers  and  made  similar  loans  elsewhere. 


EARLY  BANKING  METHODS 

The  very  meager  amount  of  specie  then  in  the  United 
States  is  noteworthy,  and,  also,  the  anxiety  of  the  Philadelphia 
Bank  directors  to  secure  some  of  it.  In  November,  1804,  a 
record  is  made  of  the  first  special  deposit  of  specie — $50,000 
in  Spanish  silver  dollars,  the  Bank  agreeing  to  return  it  in 
such  dollars,  provided  it  "be  lodged  before  the  20th  of  Decem- 
ber, and  suffered  to  remain  three  months  undrawn  for."     The 


40  The  Philadelphia  Bank 

specie  scarcity  is  reflected  in  subsequent  reports  of  the  cash. 
While  the  total  amount  of  money  held  was  increased,  yet 
the  actual  specie  in  bank  lessened.  On  June  20,  1805,  the 
Bank  held  $714,371  in  money,  of  which  the  gold  was  $61,167, 
and  the  silver  $24,722.  In  the  subsequent  September  the 
money  in  bank  was  $727,373,  but  the  gold  had  been  reduced 
to  $3,431,  while  the  silver  was  $35,037.  The  remainder  was 
circulating  notes  of  banks,  and  largely  the  Philadelphia 
Bank's  own  notes.  The  specie  was  mostly  foreign  coins,  and 
among  the  earliest  records  of  concerted  action  by  the  joint 
committees  of  the  banks  was  the  establishment  of  uniform 
values  at  which  these  coins  were  taken,  silver  being  much 
more  plentiful  than  gold.  There  are  repeated  complaints 
about  these  coins  being  "not  passable,  by  reason  of  want 
of  weight,  too  much  alloy,"  etc.,  so  that  they  had  to  be  sent 
to  the  mint  and  melted. 

The  business  of  banking  was  then  new  in  the  United 
States,  and  the  details  of  the  early  minutes  of  the  Philadelphia 
Bank  directors  show  how  many  of  the  present  methods  were 
originated.  There  is  a  minute  of  a  resolution  in  May,  1809, 
ordering  that  "no  discount  shall  be  made  unless  the  applica- 
tion is  accompanied  with  the  Note  offered  for  discount." 
In  November,  1807,  the  cashier  was  made  the  secretary  of 
the  board,  and  previously  to  that  time  it  seems  he  did  not 
attend  the  board  meetings.  He  first  attended  November 
6th,  and  on  that  date  is  the  first  record  made  of  the  amount 
of  discounts  made,  that  day's  business  aggregating  $94,976. 
Every  discount  day  afterward,  the  amount  was  recorded. 
Discounts  were  restricted  to  four  months'  paper  or  less,  and 
the  total  outstanding  on  November  16,  1807,  was  $2,406,002. 
Down  to  February  15,  1808,  the  minutes  were  kept  and 
written  by  the  president,  and  from  the  time  of  his  election 
until  that  date,  they  are  in  the  handwriting  of  George  Clymer. 


•i  -7. 


Early  Banking  Methods  41 

Then  the  board  instructed  the  cashier,  Quintin  Campbell, 
to  keep  the  minutes,  at  the  same  time  increasing  his  salary 
to  $2,500.  The  minutes  were  not  read  to  the  board  until 
December,  181 1,  when  a  resolution  was  adopted  ordering 
the  reading  at  each  board  meeting,  and  this  has  continued 
ever  since.  The  Bank  in  the  early  years  kept  but  two  holidays 
— Fourth  of  July  and  Christmas;  in  1813  New  Year's  Day 
began  to  be  kept,  and  some  years  later  Thanksgiving  Day. 

As  business  increased  the  Bank  enlarged  its  circulating 
note  issues  more  and  more.  To  meet  the  growing  popular 
demand,  it  emitted  one,  two,  three,  and  four  dollar  notes,  in 
addition  to  larger  denominations.  In  the  great  scarcity  of 
specie,  bank  notes  became  the  actual  money  of  the  people, 
and  they  were  soon  worn  out  and  defaced,  so  that  large  amounts 
came  back  into  bank  in  a  condition  unfit  for  use.  There  are 
records  of  payments  in  redemption  of  "half -notes,"  the  other 
half  being  lost,  and  in  one  case  the  loss  is  explained  by  "a 
robbery  of  the  mail."  These  worn-out  notes  accumulated  in 
the  vaults,  were  very  repulsive,  torn,  and  dirty,  but  they 
gradually  became  the  greater  part  of  the  ''money  in  bank." 
The  Bank  did  nothing  with  them,  and  in  July,  1806,  out  of 
$1,057,878  cash  held,  of  which  $64,123  was  gold  and  $26,395 
silver,  no  less  than  $647,498  were  these  worn-out  notes,  the 
remainder  being  good  notes  of  this  and  other  banks. 

In  the  winter  of  1806-07,  the  Board  began  their  destruc- 
tion, about  $720,000  having  accumulated.  The  process  of 
burning,  then  begun,  was  continued  at  intervals  afterward, 
and  was  always  a  matter  of  elaborate  detail  and  watchful 
care.  The  board  was  divided  into  five  sub-committees  of 
four  directors  each,  and  several  days  were  occupied  in  the 
burning,  each  sub-committee  doing  a  part  of  it,  and  a  detailed 
record  and  account  being  kept.  After  this  first  and  greatest 
burning,  the  "money  in  bank"  was  reduced  to  $430,226  at 


42  The  Philadelphia  Bank 

the  next  examination,  of  which  $86,546  was  gold  and  $29,584. 
silver,  and  the  remainder  notes. 

The  making  of  the  paper  on  which  the  bank  notes  were 
printed  was  also  a  matter  of  great  importance  and  the  process 
was  carefully  guarded.  Mark  Willcox  was  the  manufacturer, 
at  the  Ivy  Mills  in  Delaware  County,  that  had  furnished  the 
paper  on  which  the  Continental  money  had  been  printed  in 
the  Revolution.  A  clerk  was  always  sent  from  the  Bank  to 
the  mill  to  supervise  the  process,  and  the  paper,  when  de- 
livered, as  well  as  the  note  plates,  were  kept  in  the  custody 
of  the  president,  the  printing  being  usually  done  in  the  Bank. 
There  are  repeated  audits  of  the  president's  paper  account 
recorded,  the  counting  of  the  sheets,  and  the  burning  by 
the  directors  of  such  sheets  as  were  spoiled  in  the  process 
of  printing. 

As  the  note  issues  expanded,  so  did  the  crime  of  counter- 
feiting, and  this  w^as  a  source  of  great  annoyance  and  con- 
siderable expense.  So  serious  had  this  become,  that  in  July, 
1808,  it  was  determined  to  change  the  whole  form  of  the  notes, 
which  previously  had  been  printed  in  ordinary  types,  and 
a  committee  was  appointed  to  procure  types  with  special 
devices  for  printing  the  notes  thereafter.  Bank  officers,  and 
particularly  the  cashier,  were  repeatedly  sent  to  various 
places  to  testify  against  counterfeiters  who  had  been  arrested. 
Detectives  were  paid  for  hunting  the  counterfeiters,  and  a 
constable  in  1809  was  given  $15  for  making  an  arrest,  while 
$100  about  the  same  time  was  contributed  "to  assist  in  the 
arrest"  of  a  notorious  counterfeiter;  and  the  Bank  also  gave 
liberally  to  the  constables  and  to  funds  for  this  purpose. 

The  forgery  of  checks  also  became  a  serious  business,  and 
when  one  of  the  directors  had  his  name  forged  to  a  check  on 
which  the  forger  got  $690  and  escaped,  it  is  recorded  on  April 
15,  1808,  that  a  committee  of  the  directors  was  appointed  "to 


Early  Banking  Methods  43 

manage  the  suit"  against  the  forger,  who  was  afterward 
captured. 

The  banks  in  that  early  time  do  not  seem  to  have  made 
any  exchanges  among  themselves,  as  now,  and  the  first  germ 
of  the  system  was  adopted  in  November,  18 10,  when  the 
Philadelphia  Bank  agreed  to  an  arrangement  made  by  the 
joint  committees  representing  the  various  city  banks,  by 
which  the  Bank  was  only  to  pay  out  its  own  notes  over  the 
counter,  retaining  and  returning  to  the  other  banks  for  re- 
demption their  respective  notes,  of  which  an  account  was 
ordered  kept. 

The  first  annual  election  of  directors  by  the  stockholders 
of  the  Philadelphia  Bank  was  held  February  11,  1805,  and 
this  and  subsequent  elections  were  often  very  active  contests. 
There  were  forty-two  candidates  voted  for  and  sixteen  chosen, 
and  at  the  second  election,  in  February,  1806,  thirty-four 
candidates  received  votes.  In  the  autumn  of  1805  James  Todd, 
the  cashier,  being  in  infirm  health,  was  given  leave  of  absence 
to  go  south,  and  Quintin  Campbell,  the  first  teller,  was  ap- 
pointed acting  cashier  in  September,  being  elected  cashier 
November  8,  1805.  Mr.  Campbell  held  the  office  more  than 
thirty  years,  until  his  resignation,  November  17,  1835. 

The  Bank  had  grown  so  much  that  a  committee  was 
appointed  shortly  afterward  to  prepare  a  plan  and  estimate 
for  a  banking  house,  and  out  of  this  came  the  first  building 
the  Philadelphia  Bank  owTied.  On  Alay  16, 1806,  the  directors 
appointed  a  committee  to  purchase  the  property,  southwest 
corner  of  Fourth  and  Chestnut  Streets,  then  known  as  the 
Morris  Tavern,  from  James  Coxe,  at  a  price  not  exceeding 
$10,000,  the  lot  being  49  feet  6  inches  on  Chestnut  Street, 
and  131  feet  on  Fourth  Street.  Hereon  was  erected  the 
"Philadelphia  Bank,"  which  was  occupied  in  1808,  and  two 
years  later  the  cashier  was  given  permission  to  erect  a  house 


; 


44  The  Philadelphia  Bank 

for  himself  on  the  southern  end  of  the  lot,  without  any  rent 
for  the  ground,  the  resolution  declaring  ''it  is  highly  necessary 
for  the  security  and  interest  of  this  Bank  that  the  Cashier 
should  live  convenient  thereto." 

This  new  Philadelphia  Bank  building  acquired  great  fame, 
and  was  then  regarded  as  a  conspicuous  monument  to  the 
city,  being  the  first  specimen  of  Decorated  Gothic  architecture 
erected  in  the  United  States,  and  one  of  the  finest  works  of 
Mr.  B.  H.  Latrobe,  an  architect  of  national  fame.  The 
structure  was  sixty  feet  front,  by  forty- three  feet  deep,  having 
a  high  and  wide  archway  of  entrance,  fronting  on  Fourth 
Street,  and  the  materials  being  brick  and  marble.  The 
cashier's  house  was  afterward  built  farther  down  Fourth  Street, 
and  on  the  Chestnut  Street  side  there  was  a  spacious  garden, 
with  trees  and  shrubbery,  enclosed  by  walls  and  railings, 
and  having  on  the  western  side  the  watchmen's  lodges,  which 
also  were  Gothic  constructions.  This  bank  building,  which, 
with  an  adjacent  lot  bought  after  the  first  purchase,  cost 
$54,200,  stood  until  1836,  when  it  was  taken  down  to  give 
place  to  a  more  modern  edifice. 

In  the  early  time  the  establishment  of  branches  in  the 
interior  towns  of  Pennsylvania  became  an  important  part  of 
the  Bank  business.  Many  places  sent  requests  for  branches, 
and  in  March,  1809,  the  Legislature  passed  a  supplement 
to  the  charter,  allowing  the  directors  ''to  establish  offices, 
not  exceeding  eight  in  number,  wheresoever  they  shall  think 
proper  within  this  Commonwealth,  for  the  purposes  of  discount 
and  deposit  only."  Wherever  opened,  however,  the  consent 
of  a  majority  of  the  taxable  inhabitants  of  the  town  or  borough 
had  first  to  be  obtained.  During  the  following  year,  branches 
were  established  at  Columbia,  Harrisburg,  Washington,  and 
Wilkesbarre,  and  the  directors  of  the  parent  Bank  annually 
elected  local  boards  of  directors  for  each  of  the  branches. 


JOHN   READ. 


Early  Banking  Methods  45 

These  branches  soon  became  more  extended  loaning  offices 
than  the  parent  institution,  and  it  took  much  time  and  trouble 
to  regulate  them.  In  June,  18 10,  we  find  the  board  limiting 
their  discounts  to  $400,000  at  Washington,  $300,000  at  Har- 
risburg,  $250,000  at  Columbia,  and  $100,000  at  Wilkesbarre, 
and  giving  instructions  to  call  in  the  amounts  loaned  in  excess. 
Wilkesbarre  afterward  was  enlarged  to  $200,000. 

Compositions  with  insolvent  debtors,  arrangements  for 
extensions,  and  settlements  for  small  percentages  were  frequent, 
and  often  depositors  were  admonished  for  overdrafts,  and 
the  board  did  not  hesitate  to  bring  suit  for  recovery.  One 
depositor  who  had  "most  reluctantly  agreed  to  allow  the 
adjustment  of  $1000  error"  made  in  his  favor  by  a  clerk, 
was  ordered  to  forthwith  take  his  account  out  of  the  Bank. 
The  board  at  times  was  generous.  There  is  a  record  of  the 
relinquishment  of  a  claim  on  the  separate  estate  of  the  wife 
of  an  insolvent  debtor  which  had  been  secured  by  suit,  "on 
account  of  her  distressed  situation  and  increasing  family." 
The  business  at  the  branches  being  large,  and  the  duties  of 
all  the  officers  thus  becoming  more  exacting,  there  was  another 
general  advance  in  salaries  made  in  October,  18 10,  as  follows: 
Cashier,  $3,000;  first  teller,  $1,200;  second  teller,  $1,000; 
first  bookkeeper,  $900;  three  other  bookkeepers,  each  $700; 
runner,  $650;  and  the  clerks  at  the  branch  banks,  each  $600. 

The  Philadelphia  Bank  had  started  well,  was  in  a  pros- 
perous condition,  and  had  become  one  of  the  leading  financial 
institutions.  The  venerable  Samuel  F.  Smith,  who  was  a 
State  director  in  1807,  and  afterward  served  for  nearly  half 
a  century  as  director  and  president,  and  again  as  director, 
from  1 81 3  to  1 86 1,  wrote  upon  his  retirement,  in  November, 
1861,  a  valedictory,  in  which  he  said  "the  Bank  was  founded 
and  organized  in  1803.  The  founders  and  Directors  were  men 
of  the  highest  integrity,  of  great  intelligence,  and  much  practical 


46 


The  Philadelphia  Bank 


business  sagacity,  fully  comprehending  the  principles  on  which 
all  sound  Banking  ought  to  be  predicated,  and  in  order  to 
give  character  to  the  Institution,  they  selected  and  elected 
for  their  President,  a  gentleman  of  an  exalted  character, 
a  patriot  of  the  Revolution,  and  under  the  guidance  and 
direction  of  such  men,  the  Institution  soon  earned  and  reached 
a  high  position  in  the  business  community,  and  which  was 
long  retained;  nor  am  I  aware  that  it  has  in  any  instance  or 
in  any  manner,  whatever,  tarnished  or  impaired  the  high 
reputation,  which  was  achieved  by  its  founders  and  transmitted 
by  them  to  their  successors." 

Such  was  the  beginning;  but  the  country,  however,  was 
drifting  into  war,  and  the  Bank  soon  fell  upon  troublous 
times  requiring  great  skill  in  management. 


II 

THE    FIRST    WAR    PERIOD 

1808-1816 


II 

THE  FIRST  WAR  PERIOD 
1808-1816 

The  War  with  England —  The  Embargo —  Close  of  the  First 
United  States  Bank — The  War  Begins — Progress  of 
the  War — Suspension  of  Specie  Payments — Resumption 
— Earliest  Philadelphia  Bank  Statement. 

THE  EMBARGO 

THE  Treaty  of  Amiens,  in  March,  1802,  had  caused  a 
temporary  cessation  in  the  long  conflict  between 
England  and  France.  The  short  peace  which  fol- 
lowed had,  in  1805,  advanced  the  ocean-carrying  trade  of 
the  United  States  to  its  point  of  greatest  prosperity  in  that 
era.  Sanguine  observers  thought  our  country  might  take 
control  of  the  seas  from  Great  Britain;  and  this  condition 
encouraged  all  industries,  and  particularly  banking.  The 
Philadelphia  Bank  had  begun  at  a  good  time.  But  before 
long  England  and  France  renewed  their  struggle,  and  soon 
began  making  American  shipping  their  prey.  Philadelphia  mer- 
chants had  a  large  fleet  of  ships  trading  with  ah  parts  of  the 
world.  The  troubles  began  with  Spain,  which  was  thoroughly 
controfled  by  Napoleon.  In  1806,  British  cruisers  commenced 
seizing  and  searching  American  ships  for  deserters  and  contra- 
band of  war. 

The  United  States  v/as  the  chief  neutral  nation  in  the  vast 
European  conflict,   and   repeated  public  meetings  were  held 
4  49 


50  The  Philadelphia  Bank 

in  Philadelphia,  denouncing  the  outrages  against  commerce. 
Nelson's  defeat  of  the  fleets  of  France  and  Spain  at  Trafalgar 
led  Napoleon  to  issue  his  "Berlin  decree"  against  all  commerce 
with  England.  This  caused  serious  business  depression  in  the 
United  States  and  great  public  alarm;  marine  insurance  rates 
advanced  to  very  high  figures,  and  when  the  year  1807  opened, 
American  commercial  enterprise  was  almost  paralyzed.  There 
were  repeated  excitements  and  panics  during  that  year,  both 
England  and  France  seizing  American  ships. 

The  "Chesapeake"  outrage  off  the  Virginia  capes  created 
an  almost  unparalleled  excitement.  British  cruisers  had  fired 
into  the  ship,  killing  four  and  wounding  eighteen  of  the  crew, 
and  seizing  four  alleged  deserters.  An  immense  public  meeting 
was  convened  in  Independence  Square  to  denounce  this  vio- 
lation of  neutral  rights.  Philadelphia  Bank  directors  took  a 
conspicuous  part.  Matthew  Lawler  was  the  chairman,  and  he, 
with  George  Clymer,  David  Lenox,  and  Michael  Bright,  were 
appointed  on  the  committee  to  carry  out  the  resolutions  of 
the  meeting. 

In  December,  1807,  Congress  passed  the  famous  Embargo 
Act,  designed  to  save  American  shipping  from  seizure,  by 
detaining  in  the  United  States  all  vessels  destined  to  foreign 
ports,  and  then,  writes  the  historian,  "the  grass  began  to  grow 
on  the  wharves  and  ships  rot  at  their  moorings."  Shortly 
afterward,  the  enactment  of  the  British  "Orders  in  Council," 
and  Napoleon's  retaliatory  "Milan  decree,"  striking  at  each 
other's  commerce,  were  announced  in  this  country,  increasing 
the  trouble,  and  producing  the  deepest  commercial  gloom. 
Then  followed  serious  distress,  particularly  among  sailors  and 
those  engaged  in  shipping  trades,  their  livelihood  being  almost 
entirely  cut  off.  In  March,  1808,  Napoleon  completed  the 
series  of  attacks  upon  American  commerce  by  his  "Bayonne 
decree,"  directing  "the  seizure  of  all  American  vessels, because 


The  Embargo  51 

none  could  be  lawfully  abroad  since  the  passage  of  the  Em- 
bargo Act." 

Out  of  these  serious  commercial  difhculties  arose  the  first 
action  of  the  Philadelphia  Bank  directors,  looking  to  loans  on 
goods  deposited  as  collateral  security.  In  November,  1808, 
a  committee  was  appointed  to  consider  the  subject,  and  they 
reported  a  resolution,  which  was  adopted  November  23d. 
The  merchants  were  in  sore  trouble,  being  unable  to  export 
their  goods,  and  it  was  necessary  to  devise  a  method  of  relief. 
Thus  began  this  branch  of  bank  loans  which  has  become  so 
general.  The  resolution  recited  that  there  was  an  unusual 
quantity  of  merchandise  in  the  city,  and  this,  "during  the 
continuance  of  the  present  embargo  must  greatly  increase, 
and  thereby  render  it  absolutely  necessary  for  this  bank  to 
afford  the  proprietors  thereof  such  aid  by  the  loan  of  money 
as  may  prevent  any  real  distress  to  them,  and  of  course  to 
the  community."  The  regulation  adopted  provided  "that  the 
payer  and  indorser  of  the  Notes,  and  the  drawer  and  acceptor 
of  the  bills  presented  for  Discount,  must  be,  in  the  opinion 
of  the  Directors,  competent  with  their  avail  to  meet  their 
engagements;  that  to  insure  this,  an  amount  of  property  not 
of  a  perishable  nature,  shall  be  held  by  either  the  endorser, 
acceptor,  or  such  person  as  may  be  approved  of,  sufficient 
to  cover  the  amount  loaned;  and  that  a  deposit  has  been 
actually  made,  those  who  have  received  it  must  give  ample 
proof  to  the  Directors  of  the  Bank,  and  hold  themselves  bound 
not  to  part  with  it,  until  the  Bank  shall  express  their  assent, 
or  the  debt  for  which  it  may  be  pledged  shall  be  fully  dis- 
charged; and  in  every  case  the  said  property  must  be  insured 
against  fire." 

Congress  repealed  the  Embargo  Act  in  March,  1809,  and 
passed,  instead,  the  "Non-Intercourse  Act,"  applying  only  to 
England  and  France,  and  excluding  French  and  English  war- 


52  The  Philadelphia  Bank 

ships  from  American  ports.  Throughout  that  year  the  public 
distress  became  steadily  worse,  and  in  1810  Napoleon  revoked 
the  Berlin,  Milan,  and  Bayonne  decrees.  The  result  was  that 
public  sentiment  in  the  United  States  was  ameliorated  toward 
France,  but  became  more  hostile  to  England,  which  relaxed 
in  no  way  her  harsh  measures. 


CLOSE  OF  THE  FIRST  UNITED  STATES  BANK 

The  first  Bank  of  the  United  States,  which  had  been 
chartered  in  1791  for  twenty  years,  was  approaching  the 
termination  of  its  existence.  The  business  men  of  Philadel- 
phia developed  a  strong  sentiment  for  the  renewal  of  the 
charter,  shown  in  public  meetings  held  in  1809  and  18 10, 
and  the  sending  of  memorials  and  committees  to  Congress. 
There  was,  also,  in  portions  of  the  community,  a  powerful 
opposition  to  renewal,  and  meetings  were  held  by  opponents 
of  the  bank.  The  State  banks  in  Philadelphia  all  favored  the 
extension  of  the  charter,  mainly  for  financial  reasons.  At  a 
meeting  of  the  joint  committees  of  the  four  State  banks, — 
North  America,  Philadelphia,  Farmers'  and  Mechanics',  and 
Pennsylvania, — held  December  15,  1810,  a  resolution  was 
adopted,  declaring  that  ''general  distress  and  inconvenience 
w^ill  attend  the  cessation  of  so  great  a  monied  Institution." 
They  also  recommended  to  the  directors  of  the  banks  repre- 
sented to  send  a  memorial  to  Congress  or  to  the  Pennsylvania 
Legislature,  favoring  the  renewal  of  the  United  States  Bank 
charter;  and  expressing  the  opinion  "  that  it  cannot  be  injurious 
but  advantageous  to  the  State  Institutions."  The  matter,  on 
presentation  at  a  meeting  of  the  Philadelphia  Bank  directors, 
developed  a  difference  of  opinion,  but  a  resolution  moved  by 
John  Welsh  was  finally  adopted  by  a  vote  of  eleven  to  eight, 
that  the  Philadelphia  Bank  would  unite  with  the  other  banks 


3^  3) 

T  WiELYE  ^HALF  CI' 


■^  S^ 


FRACTIONAI,   NOTES   oF    ii.15.     (original  size.) 


Close  of  the  First  United  States  Bank 


53 


in  a  memorial  to  the  Pennsylvania  Legislature,  expressing  the 
opinion  "that  a  continuance  of  the  United  States  Bank  will 
not  be  injurious,  but  that  its  dissolution  will  be  materially 
injurious  to  the  State  Banks." 

The  memorial  was  transmitted  to  the  Legislature,  but  a 
large  majority  in  both  houses  was  opposed  to  the  United 
States  Bank,  and  passed  resolutions  requesting  the  Pennsyl- 
vania Senators  and  members  of  Congress  to  vote  against  the 
renewal  of  the  charter.  The  result,  after  a  hot  controversy, 
was  that  Congress  declined,  by  a  close  vote,  to  renew  the 
charter,  and  on  March  3d,  181 1,  the  first  United  States  Bank 
closed  its  doors  and  its  affairs  were  wound  up.  Later,  in 
March,  its  trustees  sent  a  petition  to  the  Legislature,  asking 
for  a  Pennsylvania  charter,  but  no  action  was  taken.  This 
petition  was  renewed  the  next  session,  but  no  charter  was 
passed. 

The  liquidation  of  this  greatest  bank  of  the  country  in 
those  troublous  times  had  a  very  serious  effect  upon  monetary 
affairs.  During  18 10  it  began  preparations  for  liquidation  by 
curtailing  loans  and  drawing  in  balances.  All  the  other  banks 
were  its  debtors,  and  it  was  constantly  drawing  specie  from 
them.  There  are  repeated  resolutions  of  the  Philadelphia 
Bank  directors  in  18 10  for  large  payments  of  silver  dollars 
to  it,  that  being  then  the  chief  coin.  Committees  were  sent 
to  it  to  remonstrate  against  the  wholesale  withdrawals,  but 
without  result,  and  the  process  added  to  the  distress.  So 
serious  was  the  drain,  that  on  October  20,  1810,  the  money 
in  the  Philadelphia  Bank,  reported  at  $594,902,  included  only 
$15,966  in  gold  and  $13,132  in  silver,  and  much  of  these 
were  uncurrent  coins  that  had  to  be  sent  to  the  mint  for  re- 
melting.  When  the  United  States  Bank  liquidated,  it  had 
$5,800,000  specie  in  its  vaults,  being  almost  the  entire  supply 
in   the   country.     Out   of   its   capital   of  $10,000,000,    about 


54  The  Philadelphia  Bank 

$7,000,000  was  owned  abroad,  and  all  this  had  to  be  sent 
to  Europe  to  pay  off  the  stockholders  in  specie,  not  only 
taking  about  all  we  had,  but  carrying  out  of  the  United  States 
an  amount  of  capital  the  country  then  could  ill  spare. 

The  stock  of  the  United  States  Bank  had  been  a  favorite 
investment  in  London,  where,  at  the  height  of  its  pros- 
perity in  1802,  the  Barings  had  bought  the  United  States 
Government  holdings  of  over  twenty-two  hundred  shares  at 
145,  the  Bank  having  paid  10  per  cent,  dividends  in  1801 
and  9  per  cent,  in  1802.  Its  shares  then  sold  in  London  at 
a  higher  price  than  shares  in  the  Bank  of  England.  When 
the  opposition  to  the  renewal  of  the  bank's  charter  became 
violent,  the  Barings  decided  to  sell  their  stock,  and  Stephen 
Girard,  then  the  wealthiest  man  in  America,  bought  it. 

The  war  feeling  and  the  hostility  to  England  grew  apace. 
The  deprivation  of  banking  capital  was  seriously  felt.  Thus 
we  find,  in  181 2,  the  Philadelphia  Bank  sending  another 
memorial  to  the  Legislature,  asking  for  an  act  increasing  its 
capital  by  $1,000,000.  In  it  they  say  the  gratuity  originally 
given  the  State  had  greatly  interfered  with  the  profits,  as  a 
sum  is  "periodically  set  apart  to  supply  a  fund  for  the  gradual 
sinking  of  the  gratuity,  and  always  in  derogation  of  the  divi- 
dends." The  memorial  strongly  urged  the  effect  of  the  "recent 
sufferings  of  the  mercantile  interest  from  the  embarrassed 
and  hazardous  state  of  the  foreign  commerce"  upon  the 
Bank's  prospects,  and  called  attention  to  "the  interest  the 
State  itself  has,  as  its  principal  stockholder,  in  the  affluent 
condition  of  the  Philadelphia  Bank,  and  in  its  general  credit 
and  reputation."  The  Legislature,  however,  was  then  un- 
friendly to  banks  in  general,  and  the  memorial  had  no  result. 

Stephen  Girard's  purchase  of  the  Barings'  stock  made  him 
the  largest  stockholder  in  the  United  States  Bank  and  its  prin- 
cipal creditor  when  it  wound  up.     He  decided  to  organize  a 


Close  of  the  First  United  States  Bank       55 

private  bank  of  his  own,  bought  its  building  on  Third  Street, 
and  in  May,  181 2,  opened  "Stephen  Girard's  Banking  House," 
with  $1,200,000  capital,  afterward  increased  to  $1,300,000. 
This  bank  he  continued  until  his  death  in  1831.  To  give  it 
stability  and  permanence,  he  executed  a  deed  of  trust  to  five 
prominent  Philadelphians,  the  first  named  being  David  Lenox, 
who,  the  next  year,  became  president  of  the  Philadelphia  Bank. 
The  others  were  Robert  Smith,  Robert  Wain,  Joseph  Ball, 
and  George  Simpson,  the  latter  being  his  cashier  and  manager. 
He  conveyed  to  these  trustees  all  the  property  of  the  bank,  so 
that  in  the  event  of  his  death,  all  depositors  "may  respectively 
demand,  withdraw,  and  receive  from  the  said  Bank  the  cash 
amount  or  the  specific  property  of  their  several  and  respective 
deposits  made  as  aforesaid,  in  like  manner,  with  the  same 
promptitude  and  punctuality,  and  with  like  benefit  and  effect 
as  they  could  severally  and  respectively  do  during  the  lifetime 
of  the  said  Stephen  Girard." 

Soon  after  the  opening,  Girard  began  issuing  notes  the 
same  as  other  banks,  and  then  the  question  at  once  arose 
whether  the  four  State  banks  of  Philadelphia  would  receive 
them.  The  joint  committees  of  these  banks,  June  15,  1812, 
passed  a  resolution  reciting  that  the  laws  of  Pennsylvania  dis- 
couraged, if  they  did  not  prohibit,  the  circulation  of  notes  of 
unincorporated  banks,  that  the  precedent  of  receiving  as 
money  the  notes  of  an  individual  or  of  associated  companies 
not  established  by  law  would  be  highly  dangerous,  "as  the 
practice,  once  introduced,  might  be  extended  to  cases  where 
there  is  less  solidity  and  security  than  in  the  present  instance"; 
consequently  "the  said  notes  cannot  be  received,  either  in 
payment  or  on  deposit  at  any  of  the  Banks  above  mentioned." 
The  action  was  indorsed  by  the  Philadelphia  Bank,  but  the 
State  banks,  not  long  afterward,  changed  their  policy,  re- 
ceiving Girard's  notes,  which  bore  the  device  of  an  American 


56  The  Philadelphia  Bank 

eagle  and  a  ship  under  full  sail,  and  were  signed  personally 
by  Mr.  Girard,  who  always  redeemed  them  in  specie. 

The  forging  of  checks  having  become  quite  serious,  we 
find,  on  December  24,  181 2,  the  banks  taking  the  first  step 
jointly  for  protection  by  requiring  proof  of  identity.  They 
united  in  a  regulation  "that  hereafter  to  ensure  the  payment  at 
the  bank  of  a  check  for  five  hundred  dollars  and  upwards,  it 
shall  be  required  that  the  person  to  whom  the  money  is  paid, 
shall  be  known  to  the  Teller,  and  shall  endorse  the  check,  or 
sign  a  receipt  for  the  amount  on  the  back  of  the  same,  and  that 
the  Teller  may  exercise  his  discretion  for  requiring  the  same 
in  cases  where  checks  are  drawn  for  a  less  sum  if  any  doubts 
exist  in  his  mind." 

THE  WAR  BEGINS 

Affairs  had  been  drifting  steadily  toward  the  war  with 
England,  which  Congress  formally  declared  June  18,  181 2. 
John  Gerard  Koch,  one  of  the  Philadelphia  Bank  directors, 
anticipating  the  inevitable,  had  offered  in  the  spring,  to  give 
$5,000  toward  building  a  ship  of  war  for  the  Government  at  a 
yard  on  the  Delaware  River;  or  if  the  ship  was  to  be  loaned  to 
the  Government,  he  offered  to  build  it  entirely  himself.  Lewis 
Rush,  another  director,  was  made  the  colonel  of  the  Phila- 
delphia Legion,  a  volunteer  cavalry  regiment,  which  offered 
service  to  the  War  Department  as  soon  as  war  had  been  de- 
clared. It  is  noteworthy,  in  recording  the  services  of  directors, 
that  the  charter  of  the  Pennsylvania  Company  for  Insurances 
on  Lives  and  Granting  Annuities,  which  passed  the  Legisla- 
ture March  10,  181 2,  named  three  commissioners  to  open  sub- 
scriptions for  $500,000  capital,  two  of  whom,  John  Welsh  and 
Jacob  Shoemaker,  were  Philadelphia  Bank  directors. 

The  period  before  actual  hostilities  had  been  bad  for  all 
business,   and   particularly  for   banking.    The   Philadelphia 


T^FENTYFIYE  CENTS 


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FRACTIONAL,   NOTES   uF    1315.     (original  size.) 


The  War  Begins  57 

Bank  had  been  declaring  semi-annual  dividends  of  4  per  cent, 
for  several  years,  but  in  September,  181 1,  on  account  of  the 
depressed  condition  of  affairs,  it  was  decided  not  to  declare  any 
dividend.  In  March,  18 12,  3  per  cent,  was  declared;  in 
September,  3I  per  cent.;  and  in  March,  1813,  the  4  per  cent, 
rate  was  resumed.  The  Bank  had  been  selling  new  shares  at 
intervals,  and  by  18 13  the  capital  vv^as  thus  increased  to  $1,- 
800,000,  making  $72,000  dividend  at  4  per  cent,  paid  at  each 
dividend  period.  In  expectation  of  the  war  it  had  strengthened 
its  holdings  of  specie,  largely  by  accumulating  Spanish  silver 
dollars,  then  the  universal  coin  of  America,  so  that  in  Septem- 
ber, 1812,  the  cash  reported  was  $1,055,093,  of  which  the  gold 
was $21,504,  the  silver  $403,866,  and  the  remainder  banknotes. 
Thus  the  Bank  went  into  the  war. 

In  April,  181 2,  anticipating  the  conflict,  and  the  United 
States  finances  being  in  bad  shape,  Albert  Gallatin,  the  Sec- 
retary of  the  Treasury,  sent  a  communication  to  the  Philadel- 
phia Bank,  asking  it  to  subscribe  to  a  loan  of  the  United 
States,  and  saying  that  the  amount  of  the  subscription  would 
remain  on  deposit  in  the  Bank  until  the  Government  needed 
the  money.  On  April  2 2d  the  Bank  subscribed  $100,000  to 
this  loan.  The  Pennsylvania  law  required  the  Governor  to 
approve  all  loans  to  the  Government  by  State  banks,  and  on 
May  5th,  Governor  Simon  Snyder  sent  his  approval  from 
Harrisburg,  whither  the  State  capital  had  been  removed. 
When  this  was  consummated,  the  United  States  Treasury  put 
its  first  deposit  in  the  Philadelphia  Bank.  Late  in  July  the 
directors  decided  to  make  another  loan  to  the  Government  of 
$400,000,  the  war  being  then  in  progress,  and  the  Governor 
gave  his  approval  August  loth.  This  latter  loan  was  credited 
in  four  monthly  instalments,  beginning  September  15th. 

The  death  of  the  first  President,  George  Clymer,  occurred 
at  Morrisville,  January  23,  181 3.     His  last  appearance  at  the 


58  The  Philadelphia  Bank 

Bank  was  on  the  closing  day  of  1812.  On  January  25th  a 
letter  from  Mr.  Clymer's  son  announced  his  death,  and  a 
committee  of  directors  was  appointed  to  wait  on  David  Lenox, 
and  request  him  to  succeed  the  late  president.  On  the  28th  he 
was  elected  a  director,  and  subsequently  the  president  of  the 
Bank,  and  some  time  afterward  his  salary  was  fixed  at  $3,000. 
Major  David  Lenox  was  a  leading  merchant  of  Philadelphia, 
and  one  of  the  trustees  of  Stephen  Girard's  Bank.  The  effect 
of  his  two  connections  was  seen  a  little  later,  when  the  board 
determined  to  open  an  account  with,  and  to  receive  on  deposit, 
the  notes  of  "Stephen  Girard,  Banker."  Major  Lenox  had 
served  with  distinction  in  the  early  Revolutionary  War  in  the 
Third  Pennsylvania  Battalion.  He  was  wounded  and  cap- 
tured at  Fort  Washington  in  November,  1776,  and  was  held  as 
a  prisoner  by  the  British  until  his  exchange  in  May,  1778.  He 
entered  mercantile  life  in  Philadelphia  after  the  war,  and 
became  very  prominent  in  business.  He  was  president  of 
the  Philadelphia  Bank  nearly  six  years,  until,  deciding  to 
retire  from  active  life,  to  the  general  regret  he  resigned  his  posi- 
tion December  31,  1818.  He  subsequently  lived  in  retirement 
in  Philadelphia,  dying  about  1826. 

To  carry  on  the  war,  a  United  States  loan  of  $16,000,000 
six  per  cents  had  been  authorized,  and  Secretary  Gallatin,  on 
March  i,  1813,  had  requested  the  Philadelphia  Bank  to  open 
subscription  books  for  this  loan,  which  was  done  on  the  12th. 
To  help  it  along,  the  Pennsylvania  Legislature  passed  an  act 
offering  the  Government  $1,000,000,  and  correspondence  was 
had  with  the  Bank  relative  to  providing  part  of  this  loan. 
Down  to  this  time  the  State  had  not  called  upon  the  Bank  for 
any  loan  under  the  charter  provisions  for  loaning  the  State 
$100,000  at  five  per  cent,  for  ten  years,  and,  meeting  the  situa- 
tion, the  directors  on  March  22d  passed  a  resolution  loaning 
the  State  $200,000  for  six  years  at  six  per  cent. 


Progress  of  the  War  59 

PROGRESS  OF  THE  WAR 
The  Government  loan  was  very  slow  of  sale,  and  when  it 
had  hung  fire  for  a  considerable  period,  Stephen  Girard  and 
David  Parrish,  of  Philadelphia,  came  to  the  rescue,  subscribing 
one-half  of  it,  and  John  Jacob  Astor,  of  New  York,  who  was 
then  coming  into  financial  celebrity,  took  $2,000,000,  so  that 
the  larger  portion  was  thus  placed.  They  got  it  at  86|.  The 
war  was  now  going  on  w^ith  great  activity  at  sea,  the  American 
warships,  most  of  them  built  at  Philadelphia,  gaining  many 
successes  and  making  numerous  British  captures,  though  the 
United  States  armies  on  land  had  repeated  defeats.  The 
British  fleet  maintained  a  close  blockade  of  the  Delaware  River 
entrance,  almost  entirely  cutting  off  access,  and  the  Custom 
House  at  Philadelphia,  which  under  the  moderate  rates  of  duty 
then  prevailing  had  received  an  average  of  $300,000  monthly 
in  1 810,  was,  in  1813,  reduced  to  less  than  $25,000  receipts 
monthly.  The  British  repeatedly  captured  valuable  prizes  at 
the  Delaware  Capes,  where  vessels,  ignorant  of  the  war,  arrived 
from  remote  parts  of  the  world.  Among  these  was  one  of 
Stephen  Girard's  finest  ships,  the  "  Montesquieu,"  coming  home 
from  Canton,  with  a  cargo  valued  at  $1,500,000,  which,  after 
considerable  negotiation,  he  ransomed  by  a  payment  of  $180,- 
000  in  specie.  In  April,  1813,  the  people  were  in  great  alarm 
about  the  defenseless  condition  of  the  city,  which  was  at  the 
m.ercy  of  the  enemy's  fleet,  and  at  a  large  meeting  they  ap- 
pointed a  "general  Committee  of  Superintendence  for  the 
protection  of  the  River  Delaware  and  the  City  of  Philadelphia, " 
President  David  Lenox  being  a  prominent  member. 

The  tendency  of  financial  affairs  was  to  take  the  Spanish 
silver  dollars,  the  most  valuable  coin,  out  of  the  country,  and 
we  find  in  October,  1813,  the  amount  of  silver  held  by  the 
Bank  reduced  to  $129,638,  while  the  gold  coins  in  the  vaults 


6o  The  Philadelphia  Bank 

had  increased  to  a  value  of  $150,688.  In  that  month  the  Bank 
took  more  Government  loan,  getting  $242,000  sixes  at  88j, 
which  action  was  approved  by  the  Governor.  The  first 
United  States  tax  on  bank  notes,  in  the  form  of  a  stamp  tax, 
was  imposed  as  a  war  revenue  measure  in  August,  181 3,  and 
the  Philadelphia  Bank,  in  conformity  with  the  terms  of  the 
Act,  commuted  this  tax  by  an  annual  payment  of  ij  per  cent, 
upon  the  amount  of  bank  dividends  made.  In  March,  1814, 
the  Bank  loaned  the  State  $100,000  out  of  a  loan  of  $300,000 
ordered  by  the  Legislature  for  war  purposes;  in  September, 
1814,  it  loaned  the  city  of  Philadelphia  $43,000  to  assist  in  pro- 
viding for  local  defense,  and  in  October  the  Government  was 
loaned  $33,333.  Thus,  to  the  nation.  State,  and  city  it  had 
loaned  for  carrying  on  the  war,  in  18 14,  a  total  amount  of  over 
$1,100,000  out  of  its  entire  capital  of  $1,800,000. 

The  war  was  bearing  very  hard  upon  the  people  in  every 
way;  the  blockade  had  greatly  advanced  prices,  and  we  find 
in  January,  1814,  the  Bank  directors,  "in  consequence  of  the 
advanced  price  of  the  articles  of  living,"  giving  the  clerks  ten 
per  cent,  increased  pay  for  the  previous  year.  A  similar  in- 
crease was  made  for  several  years  afterward.  The  war  made 
many  failures  and  assignments,  and  the  meetings  of  the  board 
were  largely  occupied  with  consideration  of  the  cases  of  insolvent 
debtors,  sending  committees  to  creditors'  meetings,  making 
settlements,  and  voting  releases  on  partial  payments.  So  much 
law  thus  arose  that  it  became  necessary  to  have  a  permanent 
counsel.  Previously  various  prominent  lawyers  had,  in  a 
desultory  way,  attended  to  the  occasional  suits  of  the  Bank — 
Mr.  Dallas,  Mr.  Tilghman,  INIr.  Ross,  INIr.  Kittera,  and  others. 
On  January  27, 1814,  the  first  formal  election  of  counsel  for  the 
Philadelphia  Bank  is  recorded,  Charles  Chauncey  being  chosen, 
and  on  February  7th  he  was  elected  a  director  of  the  Bank. 
His  opinions  were  sent  to  the  board  on  many  mxatters  subse- 


m 


Philad\  f^-^^^Uti^2j?^iSi^ 


FAY  to   t_^^^^    (^=2^^^^^^ 


-&«-w.«^  or 


^i^  ^  Dollars,  —  Cents. 


-Dollars,  *::z='ii€tnfs. 


EARLY   BANK   CHECK— 1S14.     (reduced  size.) 


'i^ 


itfTTt'-ilil'-i-WIIIIII        MIBlT     II         I  If     r      I        I  I 


a^sQ^iacsaiSBa^p' 


.. ..."u^UMillLllllilWT 


3AXK    NOTES— 051   AND   i-^'i.   WITH    OI-FICEKS-    SIl '.NATrKES, 
VIGNETTES    OF    GEORC.E     CLYMKR     AND    JOHN    WELSH.       (^REDUCED    SIZE.) 


Suspension  of  Specie  Payments  6i 

quently,  he  served  on  various  committees,  and,  occasionally, 
associated  with  him  in  the  legal  proceedings  and  in  opinions 
is  found  the  Nestor  of  the  Philadelphia  Bar,  Horace  Binney, 
then  advancing  into  fame. 

The  Bank  came  into  a  difScult  period.  The  extensive 
loans  to  the  Government  had  taken  away  most  of  the  banking 
capital  previously  engaged  in  mercantile  business.  In  these 
days  "call  loans"  had  not  been  devised;  deposits  were  small; 
there  were  no  surplus  funds,  and  the  banks  depended  entirely 
upon  their  capital  for  loaning.  Suspensions  and  assignments 
locked  up  a  good  deal  in  paper  that  could  not  be  collected,  and 
renewals  were  universal.  Joint  committees  of  the  city  banks 
frequently  met  to  consider  the  condition  of  affairs.  It  became 
necessary  to  curtail.  The  parent  Bank  almost  stopped  loan- 
ing, and  in  March,  1814,  all  the  branches  v/ere  ordered  to 
limit  their  discounts  to  the  amounts  then  loaned.  In  May  the 
branches  were  ordered  to  reduce  ten  per  cent,  in  discounting  on 
all  notes  as  they  fell  due  and  to  discount  no  new  paper.  Ex- 
tensions had  to  be  given  and  other  methods  taken  to  relieve 
debtors,  as  the  record  says,  who  were  under  stress,  "from  the 
present  state  of  the  commerce  of  the  country."  Even  bank 
directors  made  assignments  and  sent  in  their  resignations  from 
the  board,  which  were  regretfully  accepted. 

SUSPENSION  OF  SPECIE  PAYMENTS 

In  the  summer  of  18 14  the  British  sailed  up  Chesapeake 
Bay,  landed  at  the  head  of  Elk,  attacked  Baltimore  and  Wash- 
ington, and  burned  the  Capitol.  This  made  the  greatest 
excitement  in  Philadelphia,  renewing  the  fears  of  attack,  and 
necessitating  the  loans  for  local  defense.  There  was  an  ex- 
tensive recruiting  of  volunteers  and  all  the  city  organizations 
were  ordered  out.     This  took  away  several  of  the  clerks  and 


62  The  Philadelphia  Bank 

the  first  teller,  and  there  is  a  record  of  a  committee  of  the 
directors  being  sent  to  General  Cadwalader  to  get  the  teller 
released  from  service,  as  his  presence  was  imperatively  neces- 
sary at  the  Bank.  Another  clerk  provided  a  substitute  to  go 
to  the  field,  and  the  board  allowed  him  S6o. 

When  the  capture  of  Washington  was  announced,  the  board 
immediately  gave  instructions  not  to  receive  the  notes  of  any 
bank  to  the  southward  of  Philadelphia.  The  committees  of 
the  city  banks  met  August  29th  and  unanimously  resolved: 
"that  it  be  recommended  to  the  several  Banks  of  this  city  to 
suspend  their  payments  in  specie,  under  existing  circum- 
stances." The  next  day  all  the  banks  in  Philadelphia  sus- 
pended, the  New  York  banks  and  those  elsewhere  throughout 
the  country  immediately  following.  The  Philadelphia  Bank 
the  same  day  sent  most  of  its  specie,  $35,000  in  silver  and 
$40,000  in  gold,  to  the  branch  bank  at  Harrisburg  for  safe- 
keeping. They  also  notified  all  persons  having  property  in  the 
Bank  that  it  would  be  kept  wholly  at  the  risk  of  the  owner.  On 
August  31st  a  large  meeting  of  business  men  was  held  at  the 
Merchants'  Coffee  House,  approving  of  the  suspension,  and 
passing  a  resolution  to  sustain  the  banks  and  take  their  notes 
as  usual.  This  action  by  the  banks  was  absolutely  necessary, 
as,  other^vise,  the  small  amount  of  specie  in  the  country  would 
at  once  have  gone  out  of  the  banks  and  been  exported  to  pay 
debts  abroad.  The  next  time  the  Bank's  money  was  counted, 
out  of  a  total  of  over  $968,000  it  held  only  $5,009  in  gold  and 
$9,768  in  silver  in  the  vaults  at  Philadelphia.  The  specie  sent 
to  Harrisburg  was  not  brought  back  until  after  the  close  of  the 
war,  in  April,  18 15. 

The  suspension  of  specie  payments  soon  caused  great 
popular  inconvenience.  All  the  small  change  disappeared. 
To  supply  it,  various  kinds  of  paper  notes  were  issued  by  in- 
dividuals, some  as  low  in  denomination  as  two  cents.     These, 


Suspension  of  Specie  Payments  63 

called  "  shinplasters, "  circulated  for  a  while,  but  were  rarely 
redeemed.  The  Philadelphia  Bank  early  began  to  supply  this 
want  of  change.  There  were  copious  issues  of  one-,  two-,  and 
three-dollar  notes,  and  of  smaller  paper  tokens  for  change  to 
provide  the  various  fractional  parts  of  the  Spanish  dollar,  in 
denominations  of  50,  25,  12I  and  6|  cents,  the  latter  two  being 
the  famous  "levy"  and  "fip"  which  were  so  long  in  circulation 
in  this  country.  Nearly  $130,000  of  these  fractional  notes, 
called  "tickets,"  were  issued,  including  a  peculiar  denomina- 
tion, necessary  for  the  West  India  trade,  of  a  note  for  S1.56I, 
being  one-tenth  of  a  Spanish  doubloon.  There  were  $31,250 
of  these  peculiar  notes  printed  and  nearly  all  were  issued. 
They  were  called  in  and  burned  in  181 7  and  later.  About  the 
time  of  this  small  note  issue,  the  first  local  bank  outside  the  old 
city  of  Philadelphia  began  business,  the  Bank  of  the  Northern 
Liberties,  and  on  December  15,  1814,  the  Philadelphia  Bank 
opened  an  account  with  it.  In  September,  1814,  the  Philadel- 
phia Bank  dividend  was  reduced  to  3^  per  cent.,  and  that  rate 
was  continued  in  iSIarch,  181 5.  The  Government  was  unable 
to  pay  its  interest  on  the  public  debt  at  the  close  of  18 14,  and 
various  projects  were  discussed  for  temporary  relief.  It  was  at 
this  period  that  the  Treasury  tried  to  negotiate  a  fresh  loan  of 
$6,000,000  at  7  per  cent.,  which  was  but  sparsely  taken,  until 
Stephen  Girard  came  to  its  relief  and  subscribed  the  whole 
unsold  balance,  thus  saving  the  national  credit. 

The  war  was  ended  by  the  battle  of  New  Orleans,  January 
8,  181 5,  of  which  news  reached  Philadelphia,  February  5th. 
This  battle  was  fought  after  the  treaty  of  peace  had  been  signed 
at  Ghent  in  the  latter  days  of  18 14,  but  the  peace  was  not 
known  here  until  February  13,  181 5.  The  war  had  cost  the 
Government  in  borrowed  money  $63,000,000  in  6  and  7  per 
cent,  loans,  $17,000,000  in  Treasury  notes,  and  large  undeter- 
mined sums  for  individual  claims;  and  the  total  United  States 


64  The  Philadelphia  Bank 

debt,  after  their  partial  adjustment,  was  reported  to  Congress  in 
1816  at  $103,000,000.  Paper  money  alone  being  in  circulation, 
it  was  at  a  discount,  the  Philadelphia  Bank  notes  selling  15  to  20 
per  cent,  below  par  in  specie.  In  December,  181 4,  to  relieve 
the  scarcity  of  money,  the  Pennsylvania  Legislature  had  passed 
an  Act,  empowering  the  State  banks  to  make  large  additional 
note  issues.     Coin  had  then  entirely  disappeared. 

The  close  of  the  war  and  relief  of  the  blockade  at  the 
Delaware  Capes  naturally  brought  a  period  of  general  business 
recuperation,  and  the  activity  of  trade  soon  ameliorated  the 
stress  which  had  been  upon  most  industries.  The  Philadelphia 
Bank  directors  gave  the  branches  more  liberal  lines  of  discount. 
In  April,  $92,000  more  United  States  loan  was  taken  as  an  in- 
vestment for  the  sinking  fund  set  apart  for  the  gratuity  given 
the  State  for  the  charter,  and  $50,000  more  was  loaned  the 
State  to  enable  it  to  straighten  out  its  crippled  finances.  As 
too  much  paper  money  was  out,  all  the  banks  in  the  summer 
began  contracting  their  note  issues,  so  that  by  July,  under  the 
improving  conditions,  the  discount  on  Philadelphia  Bank  notes 
had  fallen  to  8  per  cent.  This  curtailment  of  notes  again 
v/as  detrimental,  however,  for  there  w^as  less  money  to  loan, 
and  we  find  a  committee  reporting  it  inexpedient  to  make 
further  loans,  except  where  absolutely  necessary,  the  discounts 
being  too  much  extended.  The  reduction  of  note  issues  and 
of  loans  caused  much  business  distress  during  the  latter  part 
of  the  year. 

RESUMPTION 

These  difficulties  were  successfully  surmounted,  however, 
and  there  came  a  rapid  trade  recovery  in  1816,  the  charter  of 
the  second  and  greatest  United  States  Bank  being  granted  by 
Congress  in  April,  18 16,  with  a  provision  that  it  should  make 
payments  on  demand  in  specie,  under  penalty  of  twelve  per 


Resumption  65 

cent,  per  annum.  This  resulted  in  the  calling  of  a  convention 
of  representatives  of  the  banks  of  New  York,  Philadelphia,  and 
Baltimore,  which  was  held  in  Philadelphia,  August  6,  7,  and 
8,  1 816,  to  provide  for  a  general  resumption  of  specie  payments. 
They  passed  resolutions  to  resume  specie  payments  on  the  first 
Monday  in  July,  181 7,  by  which  time  the  Bank  of  the  United 
States  was  then  expected  to  be  ready  to  begin  active  business 
in  Philadelphia,  with  branches  in  Boston,  New  York,  and 
Baltimore.  If  resumption  were  possible  at  an  earlier  date,  the 
resolutions  indicated  that  the  time  v'ould  be  anticipated. 

Upon  being  informed  of  this  action,  the  Philadelphia  Bank 
directors  passed  a  resolution  on  August  15th  that  the  Bank 
"resume  payments  in  specie  on  the  first  Monday  in  July  next, 
provided  that  all  the  Banks  represented  in  said  convention 
adopt  the  same  resolution."  All  the  banks,  in  September, 
joined  in  an  address  to  the  public  announcing  their  action,  and 
indicating  that  they  might,  should  the  developments  be  favor- 
able, resume  at  an  earlier  time.  This,  however,  required  a 
good  deal  of  preliminary  v/ork. 

The  Bank  of  the  United  States  opened  for  business  in 
Philadelphia  on  the  first  Monday  in  January,  181 7.  To 
successfully  carry  out  the  requirements  of  the  charter  as  to 
payments  in  specie,  it  was  necessary  to  buy  a  supply  abroad  and 
bring  it  across  the  ocean.  With  this  object,  John  Sergeant,  one 
of  the  leading  citizens  of  Philadelphia,  was  sent  as  Commis- 
sioner to  London  to  obtain  the  specie,  and  for  this  purpose  to 
negotiate  a  loan,  pledging  as  security  United  States  loan.  The 
other  banks  in  Philadelphia  were  invited  to  participate,  and 
Mr.  Sergeant  consummated  the  arrangement.  He  got  at  that 
time  $1,195,000  in  specie  and  brought  it  over,  and  upon  this 
fund  the  subsequent  resumption  was  based.  The  various 
banks  participated  in  proportion  to  the  amounts  of  United 
States  loan  they  respectively  contributed  to  the  general  fund, 
5 


66  The  Philadelphia  Bank 

the  banks  also  agreeing  to  make  good  any  deficiency  in  the 
value  of  the  collateral  that  might  ensue.  The  share  of  the 
Philadelphia  Bank  was  $101,833.36  in  specie,  and  it  pledged 
$150,000  in  United  States  loan,  which  it  borrov/ed  from  the 
Pennsylvania  Bank,  and  subsequently  repaid,  buying  the  loan 
at  99i.  The  imported  specie  was  coined  into  American  money, 
and  the  progress  of  events  toward  a  formal  resumption  was 
more  rapid  than  had  been  anticipated.  The  Government 
made  an  announcement  early  in  181 7  that  it  had  decided  to 
cease  issuing  irredeemable  paper  on  February  20th.  The 
officers  of  the  United  States  Bank  then  suggested  that  there  be 
a  simultaneous  resumption  by  the  banks,  and  the  Philadelphia 
Bank  directors,  on  February  3d,  passed  a  resolution  ordering 
resumption  February  20th.  Soon  afterpv^ard  we  find  the  Bank 
officials  sending  large  amounts  of  Spanish  dollars  to  the  mint  for 
coinage  into  half-dollars. 

It  is  a  curious  commentary  on  this  resumption  of  February 
20,  181 7,  which  in  practice  was  merely  nominal,  not  becoming 
actually  effective  until  a  good  while  later,  that  the  Philadelphia 
Bank,  although  the  specie  importation  cost  it  $5,500,  seems 
never  to  have  really  gotten  possession  of  its  share  of  the  specie. 
The  necessities  of  the  United  States  Bank  at  that  period  re- 
quired it  to  absorb  all  the  specie  in  sight,  and  in  January,  18 18, 
it  theoretically  gave  the  Philadelphia  Bank  its  share  of  the 
specie,  by  charging  the  amount  against  a  balance  then  owing 
by  the  latter  Bank  to  the  former.  The  Philadelphia  Bank  also 
seems  from  its  own  resources  to  have  gotten  gold  in  quantities, 
which  it  loaned  to  the  United  States  Bank  at  intervals  in  18 17 
and  1 8 18.  It  became  very  inconvenient  to  carry  out  the  actual 
resumption  in  1817,  and  in  August  the  banks  agreed,  instead  of 
settling,  to  pay  interest  on  the  balances  they  owed  each  other, 
this  continuing  until  June  20,  181 8,  when  they  were  able  to 
resume  actual  specie  payments  of  balances  due.     The  Phil- 


Earliest  Philadelphia  Bapk  Statement        67 

adelphia  Bank  subsequently  sold  in  London  its  $150,000 
United  States  loan,  and  liquidated  its  proportion  of  the  debt  in- 
curred to  obtain  the  specie.  The  scarcity  of  the  precious 
metals  continued  for  a  long  period  afterw'ard,  and  at  times 
greatly  interfered  with  general  business  and  banking. 


EARLIEST  PHILADELPHL^  BANK  STATEMENT 

As  an  outcome  of  the  movements  toward  resumption  was 
the  first  publication  of  a  statement  of  the  finances  of  the  Phila- 
delphia Bank.  Committees  from  the  Legislature  had  occa- 
sionally visited  the  Bank,  and  made  an  official  but  quite 
perfunctory  examination,  without  any  publication.  Late  in 
December,  1816,  however,  the  Legislature  called  for  a  statement 
from  the  various  banks  in  Philadelphia.  The  result  was  that 
in  January,  181 7,  a  detailed  statement  was  transmitted  to  each 
House,  the  figures  being  made  up  as  of  November  4,  181 6. 
This  is  the  first  recorded  statement  of  the  Philadelphia  Bank. 

The  figures  show  aggregate  assets  of  $3,330,460.  There 
were  $2,372,231  discounted  notes,  $98,000  United  States  loan 
(held  for  the  contingent  fund),  $50,000  loaned  to  the  State  of 
Pennsylvania  and  $59,000  to  the  city  of  Philadelphia,  $190,600 
due  from  other  banks,  $54,200  banking  house,  $21,300  other 
real  estate,  including  the  branches,  $3,000  turnpike  and  bridge 
stocks,  $4,648  expenses  since  the  last  dividend,  $145,126  cost 
of  charter,  $228,438  specie,  and  $103,917  notes  of  other  banks. 
The  capital  stock  was  $1,800,000,  the  notes  in  circulation 
$456,013,  due  individual  depositors  $671,737,  due  to  banks 
$152,100,  deposit  of  State  of  Pennsylvania  $22,500,  dividends 
unpaid  $12,402,  and  sinking  fund  for  cost  of  charter  and  con- 
tingent fund,  $195,884.  It  will  be  noticed  that  the  deposits 
were  comparatively  small,  and  that  the  Bank  did  not  undertake 
to  make  loans  much  in  excess  of  the  capital  and  note  issues. 


68  The  Philadelphia  Bank 

such  being  in  those  days  the  general  idea  of  the  basis  of  bank- 
ing, while  it  undertook  to  hold  about  twenty  per  cent,  of  its  notes 
and  deposits  in  specie.  The  branches  did  a  large  share  of  the 
discounting,  $936,431,  compared  with  $1,435,800  discounted  by 
the  parent  Bank,  and,  as  has  been  seen,  their  excesses  were 
continually  causing  anxiety,  and  ultimately  led  the  institution 
to  close  them,  both  the  Harrisburg  and  Washington  branches 
being  sold  in  181 7,  securing  their  own  charters  direct  from  the 
State. 


Ill 

THE    UNITED    STATES    BANK    ERA 

1816-1841 


Ill 

THE  UNITED  STATES  BANK  ERA 
1816-1841 

Banking  in  Philadelphia — Ba^ik  Robberies — The  Phila- 
delphia Bajik  Chai^ter  Extended — Removal  of  the  De- 
posits from  the  United  States  Bank — The  Panic  of  i8^y 
— End  of  the  United  States  Bank. 

BANKING  IN  PHILADELPHIA 

DURING  more  than  two  decades  following  the  war  with 
England,  the  finances  of  Philadelphia  and  of  the 
country  were  largely  dominated  by  the  second  Bank 
of  the  United  States.  Such  serious  financial  difficulties  had 
followed  the  enforced  liquidation  of  the  first  Bank  of  the 
United  States,  and  the  Government  had  been  so  much  crip- 
pled in  raising  money  to  carry  on  the  war,  that  public  opinion 
again  became  strongly  inclined  to  the  idea  of  reviving  the 
national  bank  as  a  remedy.  Albert  Gallatin,  who  had  been 
Secretary  of  the  Treasury  until  February,  1814,  and  Alexander 
J.  Dallas,  of  Philadelphia,  who  succeeded  him,  both  urged  the 
necessity  of  having  a  great  national  bank  as  an  indispensable 
adjunct  to  the  Federal  treasury.  In  April,  1816,  Congress 
chartered  the  second  Bank  of  the  United  States,  to  continue 
for  twenty  years,  and  as  the  country  had  grown  so  much,  its 
capital  was  enlarged  to  $35,000,000  (the  Government  holding 
$7,000,000),  compared  with  the  $10,000,000  capital  of  the  first 
bank.     Such  a  gigantic  institution  for  those  early  days  soon 

71 


72  The  Philadelphia  Bank 

became  an  enormous  power  both  in  finance  and  politics,  and 
it  overshadowed  the  smaller  State  banks  in  Philadelphia. 

The  second  United  States  Bank  began  business  in  Carpen- 
ters' Hall,  January  7,  181 7,  and  in  April,  1819,  the  corner-stone 
of  its  new  bank  building  was  laid  on  Chestnut  Street  above 
Fourth  Street,  a  short  distance  west  of  the  Philadelphia  Bank. 
This  United  States  Bank  building  was  modeled  after  the 
Parthenon  at  Athens,  and  is  novv*  the  Philadelphia  Custom 
House.  The  dealings  with  the  other  banks  in  reference  to  the 
resumption  of  specie  payments  have  already  been  described. 
Among  its  first  operations  was  the  transfer  to  itself  from  other 
banks  of  the  Government  money  deposits  which  several  of 
them  held.  Its  opening  was  an  impressive  event,  and  was 
heralded  as  a  favorable  augury  for  the  future.  It  is  note- 
worthy that  a  great  patriotic  ball  was  given  in  this  city  on 
Washington's  Birthday,  181 7,  at  Washington  Hall,  then  the 
chief  assembly  hall,  of  which  President  Lenox  of  the  Phila- 
delphia Bank  was  one  of  the  leading  managers,  representing 
the  Society  of  the  Cincinnati. 

The  Philadelphia  Bank  during  this  period  was  going  along 
with  its  regular  business,  growing  in  esteem  and  strengthening 
its  position  by  conservative  management.  About  this  time  it 
changed  its  discount  days  from  three  to  two  per  week,  fixing 
Monday  and  Thursday  for  the  board  meetings,  which  con- 
tinued until  very  recently.  Shortly  after  the  close  of  the  v»-ar, 
the  four  banks  in  the  city,  with  the  Bank  of  the  Northern 
Liberties,  which  was  located  just  across  Vine  Street,  on  the 
northern  boundary,  formed  an  organization  for  mutual  ex- 
changes of  their  bank  notes  at  stated  periods,  and  also  an 
arrangement  for  the  payment  of  interest  upon  the  balances 
owing  by  one  to  another.  This  grew  out  of  the  necessity  of 
some  arrangement,  as  specie  was  then  at  a  premium,  and  it 
was  the  germ  which  afterward  developed  into  the  Philadelphia 


Banking  in  Philadelphia  73 

Clearing  House.  The  banks  agreed  to  settle  balances  due  in 
treasury  notes  or  United  States  loan,  both  at  market  value,  by 
drafts  on  other  banks,  or  "by  any  other  method  that  might 
be  mutually  arranged."  Some  of  the  newly  chartered  banks 
declined  to  pay  interest  on  the  balances,  and  were  excluded, 
but  they  gradually  came  in  during  succeeding  years,  so  that 
the  arrangement  ultimately  covered  all  the  banks  in  the  city 
and  county  of  Philadelphia.  Committees  from  each  board 
supervised  the  organization,  and  it  was  then  called  the  "Gen- 
eral Bank  Committee,"  and  usually  discussed  and  formulated 
all  topics  requiring  joint  bank  action. 

During  1816  and  18 17  business  was  dull  and  times  were  hard 
in  Philadelphia,  with  much  suffering  among  the  poor,  so  that 
relief  meetings  were  held  in  the  winter.  The  restricted  trade 
curtailed  banking  profits  and  in  September,  1816,  the  Phila- 
delphia Bank  had  to  reduce  its  semi-annual  dividend  to  3  per 
cent.,  and  in  March,  181 7,  it  paid  3 J  per  cent.,  and  in  Septem- 
ber, 3  per  cent.  The  resumption  of  specie  payments  in  Feb- 
ruary, 181 7,  was  little  more  than  nominal,  and  for  a  long  time 
afterward  both  American  and  foreign  coins  continued  at  a 
premium,  and  the  only  actual  money  in  circulation  was  bank 
notes  and  "shinplasters,"  and  these  were  very  scarce,  the 
larger  part  of  the  United  States  having  no  money  at  all,  the 
people  carrying  on  business  by  the  primitive  methods  of  barter. 
The  resumption,  however,  had  somewhat  checked  the  tendency 
of  Europe  to  draw  coin  from  this  country.  The  new  United 
States  Bank  was  universally  looked  to  for  a  remedy,  and  its 
panacea  was  generally  the  suggestion  to  the  other  banks  to 
enlarge  their  lines  of  discounts.  As  these  suggestions  came  to 
the  Philadelphia  Bank,  the  proceedings  of  the  board  show  that 
they  were  always  voted  inexpedient. 

The  United  States  Bank  went  freely  into  discounting,  and 
particularly  in  lines  which  included  the  notes  of  certain  of  its 


74  The  Philadelphia  Bank 

stockholders  in  Philadelphia  and  Baltimore,  and  this  curtailed 
the  general  use  of  its  capital.  As  1817  progressed,  it  and  most 
of  the  other  banks  increased  their  loans  enormously,  with  the 
expanding  mercantile  business  of  the  country,  and  at  the  close 
of  the  year  there  were  much  more  bank  credits  than  at  any 
time  previously.  These  excessive  bank  loans  naturally  created 
alarm,  and  in  the  autumn  of  181 7  a  curtailment  began,  the 
United  States  Bank  enforcing  a  reduction  of  about  $7,000,000 
during  October,  which  produced  a  severe  monetary  stringency. 
Specie  was  again  going  out  of  the  country,  and  meetings  of 
merchants  asked  Congress  to  prohibit  its  export.  This  was 
not  actually  done,  but  early  in  181 8  Congress  endeavored  to 
adopt  a  system  of  commercial  retaliation  for  discriminations 
by  other  nations,  but  it  was  soon  found  impracticable  of  en- 
forcement. 

In  October,  1818,  President  David  Lenox  announced  to  the 
directors  that  he  intended  to  retire  from  active  business  and 
resign  as  president  of  the  Philadelphia  Bank,  at  the  close  of 
the  year,  and  on  December  31st  he  presented  his  resignation 
as  president  and  director.  The  resignation  was  accepted,  the 
board  sending  him  a  letter  expressing  their  sentiments  of  good- 
will and  confidence,  and  w^ishing  him  in  his  retirement  ''that 
happiness  which  a  long  life  spent  in  a  manner  equally  honorable 
to  yourself  and  beneficial  to  your  country,  justly  entitles  you." 
This  letter  elicited  a  warm  and  friendly  acknowledgment  from 
the  retiring  president. 

Upon  December  31,  181 8,  John  Read,  who  had  been  serv- 
ing as  a  State  director,  was  elected  a  stockholders'  director  and 
president  of  the  Philadelphia  Bank.  At  the  same  time  Charles 
Chauncey  resigned  as  director  and  solicitor  of  the  Bank.  John 
Read  was  born  at  New  Castle,  Delaware,  July  7,  1769,  and 
was  the  fourth  son  of  George  Read,  who  was  afterward  a 
member  of  the  Continental  Congress,  and  one  of  the  signers 


Banking  in  Philadelphia  75 

cf  the  Declaration  of  Independence  from  Delaware.  His 
mother  was  Gertrude,  daughter  of  George  Ross,  a  prominent 
Presbyterian  clergyman  of  New  Castle,  and  his  maternal 
uncle,  George  Ross,  the  second,  was  also  a  signer  of  the  Decla- 
ration of  Independence.  John  Read  was  graduated  from 
Princeton  College  in  1787,  and  studying  law  was  admitted  to 
practice  at  New  Castle,  subsequently  removing  to  Philadelphia. 
Here  he  married  Martha  Meredith,  daughter  of  Samuel  Mere- 
dith, the  first  Treasurer  of  the  United  States,  and  a  niece  of 
George  Clymer,  the  first  president  of  the  Bank.  Mr.  Read 
became  the  Agent-General  of  the  United  States  in  1797,  ad- 
justing Revolutionary  and  other  claims  against  the  United 
States  under  the  Jay  Treaty.  He  was  subsequently  a  member 
of  the  Philadelphia  City  Councils,  and  of  both  Houses  of  the 
Legislature  and  City  Solicitor  in  18 17. 

Mr.  Read  w^as  an  executor  of  the  estate  of  George  Clymer, 
and  this  began  his  connection  with  the  Philadelphia  Bank,  to 
which  the  Senate  elected  him  a  State  director  in  January,  18 18. 
He  served  as  president  of  the  Philadelphia  Bank  from  De- 
cember 31,  1 818,  until  his  resignation  on  account  of  the  weight 
of  increasing  years,  February  5,  1842.  Mr.  Read  then  re- 
moved to  Trenton,  New  Jersey,  where  he  spent  the  remainder 
of  his  life,  dying  July  13,  1854,  at  the  age  of  eighty-five  years. 
He  was  for  many  years  during  his  residence  in  Philadelphia 
the  Rector's  Warden  of  the  United  Churches  of  Christ  Church, 
St.  Peter's,  and  St.  James;  and  subsequently  had  an  active 
connection  w^ith  St.  Michael's  Church  in  Trenton.  He  was 
the  author  of  various  valuable  papers  in  connection  with  his 
services  as  x\gent- General  of  the  United  States,  published  at 
that  time  in  a  book  entitled  "Arguments  on  British  Debts." 


76  The  Philadelphia  Bank 

BANK  ROBBERIES 

The  Philadelphia  Bank  was  not  without  the  customary 
dangers  of  the  business.  The  counterfeiters  and  forgers  have 
already  been  referred  to.  It  also  suffered  from  robberies. 
The  greatest  bank  robbery  in  early  Philadelphia  history  was 
the  entering  of  the  Pennsylvania  Bank  in  August,  1798,  about 
$161, coo  in  money  being  stolen.  The  thieves  were  not  dis- 
covered until  the  following  November.  One  of  them  was  the 
bank  porter,  and  being  taken  ill  of  a  fever,  he  confessed,  after- 
ward dying.  There  was  one  other  confederate,  a  man  then 
prominent  in  politics,  and  the  successful  management  of  the 
case  against  him  enabled  the  bank  to  recover  $158,000,  so  that 
the  actual  loss  was  only  about  $3,000. 

The  Philadelphia  Bank  was  entered  on  Saturday  night, 
and  robbed  on  Sunday,  October  20,  1816.  The  thief  was 
unable  to  get  into  the  inner  vault,  but  he  took  from  the  desks 
and  drawers  and  other  places,  some  silver  plate,  and  money 
amounting  to  $4,093.79,  mostly  in  bank  notes.  A  constable 
nam.ed  Millman  v/as  able  to  locate  and  arrest  the  thief,  who 
proved  to  be  a  man  quite  well  known,  N.  W.  L.  Learnard, 
and  he  managed  the  capture  so  well  that  the  Bank  gave  the 
constable  a  reward  of  $50.  Of  the  plunder  $3,423.89  was 
recovered,  the  loss  being  $669.90,  mostly  in  the  paper  notes  of 
the  denomination  of  $1.56!.  Learnard  was  convicted  and 
sentenced  to  twelve  years'  imprisonment. 

Another  attempt  at  robbery  occurred  in  April,  1821,  but 
happily  was  detected  and  frustrated.  The  story  has  a  tinge 
of  romance.  The  sewer  which  was  constructed  to  cover  the 
southern  branch  of  Dock  Creek  runs  from  Orianna  Street  up 
Chestnut  to  Fourth,  and  then  southwest  past  the  original 
Philadelphia  Bank  building  toward  Fifth  Street.  The  build- 
ing was  constructed  on  heavy  arches  alongside  this  sewer,  and 


Bank  Robberies  77 

a  party  of  thieves  conceived  the  scheme  of  robbing  the  Bank 
by  passing  from  the  Delaware  up  the  Bock  Creek  sewer  in  a 
boat,  vv^hich  they  left  in  the  neighborhood  of  the  Girard  Bank, 
and  then  going  into  the  branch  sewer  to  the  Philadelphia  Bank 
building,  where  they  excavated  a  passage  through  the  sewer 
wall  and  under  the  foundations  of  the  Bank,  and  thus  got  into 
the  vaults.  Upon  x'Vpril  16,  1821,  their  operations  were  acci- 
dentally discovered  by  overhearing  the  thieves  at  work. 

Quintin  Campbell,  the  cashier,  was  in  the  habit,  after  the 
Bank  had  closed,  of  going  inside  to  see  if  everything  was  right. 
The  v/atchman,  who  has  left  the  account  of  this  attempted 
robbery,  says  that  upon  that  evening  the  cashier,  who  was 
inside,  came  to  the  Bank  door  and  asked  him  to  enter.  He  did 
so,  and  found  several  of  the  clerks  there,  whom  the  cashier  had 
sent  for.  They  cautioned  him.  to  be  silent  and  listen,  and  in  a 
short  time  a  noise  was  heard  as  of  filing  or  sawing,  upon  the 
outside  of  the  inner  door  leading  to  the  cellar.  To  find  out 
what  it  was,  the  door  was  quickly  opened,  the  watchman  rushed 
in,  followed  by  the  others,  and  discovered  tv/o  men,  whom  they 
pursued  down  the  cellar  steps,  the  watchman  striking  at  the 
thieves  with  his  sword,  but  they  turned  suddenly  into  one  of  the 
arches  and  passed  out  of  sight.  They  overturned  the  ash- 
scuttle  in  their  flight,  and  the  pursuers  made  for  that  point, 
and  in  front  of  the  arch,  v;here  the  ashes  were  kept,  they  dis- 
covered the  hole  by  which  the  thieves  had  entered  and  escaped. 
It  was  evident  that  they  had  intended  to  dig  into  the  money 
vault,  but  missed  it  by  a  few  yards. 

A  watch  was  at  once  set;  tvv^o  clerks  immediately  proceeded 
to  the  sewer  inlet  on  Orianna  Street  near  Chestnut,  thinking 
the  men  would  come  out  there,  it  being  near  the  Bank.  In  a 
few  moments  they  heard  talking  in  the  sewer  near  the  inlet, 
and  directly  they  saw  the  men  place  their  hands  on  the  iron  bar 
that  crossed  the  inlet  in  the  act  of  coming  out,  but  one  of  the 


78  The  Philadelphia  Bank 

clerks  being  too  hasty  aimed  a  blow  with  his  sword  at  their 
hands,  causing  them  to  retreat.  The  clerks  returned  to  the 
Bank  and  reported  this.  Another  clerk,  having  no  weapon, 
went  home  to  procure  one,  and  returning  down  Fourth  Street 
above  Market,  saw  a  man  covered  with  filth  and  dirt  walking 
closely  alongside  a  bordering  wall  as  if  to  avoid  observation. 
The  clerk  accosted  him,  but  getting  no  explanation,  arrested 
the  man  on  suspicion,  taking  him  to  the  Bank,  and  it  turned 
out  that  he  was  one  of  the  party  of  robbers.  The  next  day 
Fourth  Street  was  excavated  in  front  of  the  Bank.  An  ex- 
amination of  the  entire  sewer  was  made,  and  in  it,  down  at 
Third  Street,  nearly  opposite  the  Girard  Bank,  was  found  a 
boat  containing  shovels,  spades,  pickaxes,  handspikes,  and 
other  tools,  also  a  liberal  stock  of  provisions — ham,  crackers, 
cheese,  dried  beef,  etc.  This  boat  had  been  stolen  from  a 
boat-builder  on  Swanson  near  Queen  Street.  It  was  sur- 
mised that  the  thieves  had  been  occupied  two  or  three  weeks, 
working  in  the  day-time  when  the  noise  in  the  streets  would 
prevent  them  being  heard,  and  coming  out  of  one  of  the  inlets 
at  night.  The  captured  thief  v/as  convicted  and  imprisoned, 
but  was  afterward  pardoned  out,  when  he  stole  a  horse  and  gig, 
the  narrator  says,  and  left  for  other  parts. 

The  Philadelphia  Bank  was  entered  by  thieves  a  third 
time  on  the  night  of  Saturday,  January  12,  1834,  and  during 
that  night  and  Sunday  the  main  vault  was  opened  and  robbed 
of  $64,265,  all  in  notes,  chiefly  the  Bank's  own  issues.  The 
thieves  escaped  wdth  their  plunder,  and  although  much  trouble 
was  taken,  and  they  were  traced  to  New  York,  and  finally  to 
Europe,  nothing  seems  to  have  been  recovered.  The  Bank 
passed  its  dividend  the  next  i\Iay  and  thus  recouped  the  loss. 

In  the  general  progress  of  the  business  of  the  Bank,  it 
determined  upon  winding  up  the  branches  which  had  been 
found  not  only  troublesome,   but  also  unprofitable.     In  re- 


Bank  Robberies  79 

peated  instances,  after  the  war,  their  business  had  been  re- 
stricted, and  in  181 7  arrangements  were  made  to  sell  them  to 
organizations  w^hich  had  obtained  bank  charters  in  the  respec- 
tive localities.  In  May,  181 7,  the  board  issued  a  general 
instruction  to  stop  business  at  the  branches,  ordering  them  to 
collect  the  debts  due,  and  send  the  proceeds  to  the  parent  Bank. 
Throughout  this  period  of  the  Bank's  history  the  record  is 
frequent  of  subscriptions  to  the  old  city  volunteer  fire  com- 
panies, usually  ten  dollars  to  each. 

The  Bank  was  liberal  in  its  loans  to  the  State  of  Pennsyl- 
vania. It  loaned  $50,000  in  April  and  $50,000  more  in  Octo- 
ber, 18 1 8,  another  $50,000  in  1820,  and  another  $50,000  in 
1821,  so  that  in  a  statement  made  April  4,  1821,  there  appeared 
an  item  of  $200,000  loaned  to  the  State.  There  was  then  a 
five  per  cent,  loan  of  $1, 000,000  issued  by  the  State,  and  the 
four  State  banks  in  Philadelphia  took  it  all,  the  Philadelphia 
Bank  taking  $250,000.  In  1823  the  Bank  loaned  the  State 
$150,000  more  at  6  per  cent.,  and  in  1826,  with  the  Farmers' 
and  Mechanics'  Bank,  it  took  a  loan  of  $300,000,  issued  by  the 
State  at  io3f.  In  June,  1820,  the  United  States  asked  pro- 
posals for  a  $2,000,000  loan,  and  the  Philadelphia  Bank  offered 
to  take  $300,000  at  102.  The  Bank  of  the  United  States,  how- 
ever, outbid  this,  taking  the  whole  loan,  and  the  Philadelphia 
Bank's  offer  was  declined.  In  the  decade  from  181 1  to  1820 
inclusive,  the  dividends  on  Philadelphia  Bank  stock  aggregated 
sixty-six  per  cent.  In  the  bank  statement  of  April  4,  1821,  the 
loans  were  reported  at  $2,117,822,  the  deposits  $495,521,  and 
the  issue  of  notes  $407,400.  There  is  a  record  in  1821  of  a  loan 
to  the  Bank  of  Georgia  of  $50,000,  and  in  1831  of  $150,000  to 
the  Bank  of  New  Orleans.  In  March,  1822,  vrhen  the  appli- 
cations for  discounts  were  unusually  large,  there  was  an  order 
made  that  no  paper  running  over  four  months  should  be  dis- 
counted.    In  those  davs  the  Bank  was  allowed  to  own  its  own 


8o  The  Philadelphia  Bank 

stock,  and  in  March,  1823,  it  had  $214,495  invested  in  its  own 
shares.  A  long  time  was  required  to  collect  all  the  outstanding 
debts  due  the  branches,  and  as  late  as  November,  1830,  a 
record  shows  that  $129,905  was  then  still  owing  by  the 
branches. 


THE  PHILADELPHIA  BANK  CHARTER  EXTENDED 

The  original  charter  of  the  Philadelphia  Bank  expired 
March  5,  1824.  The  directors  early  determined  to  ask  for  an 
extension,  and  their  petition  to  the  Pennsylvania  Legislature 
for  this  was  made  December  7,  1820.  The  bad  financial  con- 
dition of  the  country  was  quoted  as  a  reason  for  not  causing 
the  disturbances  that  would  arise,  through  the  enforced  liqui- 
dation, by  the  lapse  of  the  charter,  of  the  Bank,  which  then  had 
nearly  $2,000,000  loaned  to  individuals.  The  petition  re- 
ferred to  the  "real  distress  of  the  people,"  and  *'the  singularly 
disordered  state  of  the  currency,"  saying  that  "universal  dis- 
tress and  embarrassment  prevail  throughout  the  comm.unity, 
when  it  is  difficult  for  those  Vv^ho  are  in  debt  to  comply  with  their 
ordinary  engagements,  and  when  the  Legislature  itself,  m.oved 
by  the  general  suffering,  has  interposed  to  prevent  the  sacrifice 
of  property  of  the  debtors." 

The  extension  of  the  charter  passed  the  Legislature  March 
28,  1823,  and  was  accepted  by  the  stockholders  at  a  meeting 
held  June  4th.  It  continued  the  existence  of  the  Bank  until 
May  I,  1839,  and  by  another  act,  passed  April  i,  1836,  the 
Bank  was  further  extended  for  twenty  years.  The  title  was 
shortened  to  "The  Philadelphia  Bank,"  which  thus  continued 
under  this  extension  and  the  general  banking  law  of  the  State 
afterward  passed,  until  on  October  20,  1864,  the  stockholders 
voted  to  become  a  national  bank  under  the  Federal  laws. 

The  new   charter  limited   the   capital,   as  previously,   to 


N'.    PARKER    SHORTRIDGE, 
President. 


The  Philadelphia  Bank  Charter  Extended     8i 

$2,000,000,  and  made  various  changes  and  restrictions.  The 
board  was  reduced  to  seventeen  directors,  thirteen  to  be  chosen 
by  the  stockholders  and  four  by  the  Legislature,  and  each 
director  to  hold  at  least  five  shares;  the  third  Monday  of  No- 
vember was  made  the  annual  election  day,  the  cashier  was 
prohibited  from  holding  stock,  and  the  debts  of  the  Bank  were 
limited  to  twice  the  amount  of  the  capital  stock  actually  paid 
in.  The  rate  of  discount  on  loans  was  not  to  exceed  one-half 
of  one  per  centum  for  thirty  days,  the  dividend  periods  were 
changed  to  the  first  Monday  in  May  and  November,  and  annual 
statements  were  to  be  made  to  the  Auditor- General  in  Novem- 
ber for  transmission  to  the  Legislature.  The  suspension  of 
payment  in  specie  was  prohibited  under  penalty  of  payment 
of  twelve  per  cent,  interest  per  annum,  on  the  note,  bill,  de- 
posit, or  other  obligation  so  refused  payment  in  specie,  but  the 
holder  must  make  demand  every  three  months  to  continue  the 
interest.  If  the  refusal  continued  more  than  three  months, 
the  Bank  was  liable  to  forfeiture  of  the  charter,  but  this  for- 
feiture which  the  creditor  could  secure  reduced  the  interest  rate 
on  the  debt  to  six  per  cent.  The  Bank  was  also  prohibited 
from  making  any  more  dividends  or  issuing  any  more  notes, 
until  specie  payments  were  resumed,  "except  to  such  claimants 
of  deposit  moneys  as  may  demand  them  in  lieu  thereof." 

Internal  improvements,  mainly  by  constructing  canals, 
were  then  the  popular  movement,  so  that  this  new  charter  was 
paid  for  by  the  Bank  agreeing  under  certain  conditions  to 
subscribe  for  five  hundred  shares  of  stock  in  the  Chesapeake 
and  Delaware  Canal,  which  after  the  lapse  of  fifteen  years  were 
to  be  transferred  to  the  Commonwealth.  The  State  of  Penn- 
sylvania also  was  given  the  right  to  subscribe  two  thousand 
additional  shares  in  the  stock  of  the  Bank  at  par;  and  whenever 
requested,  the  Bank  was  to  loan  the  State,  at  five  per  cent, 
interest,  an  amount  not  exceeding  five  per  cent,  of  the  capital 

6 


82  The  Philadelphia  Bank 

for  a  term  not  exceeding  the  unexpired  portion  of  the  charter. 
The  stock  subscription  privilege  was  relinquished  in  the  sub- 
sequent extension  of  the  charter  in  1836. 

The  Pennsylvania  Legislature  in  March,  1823,  made  the 
first  incorporation  of  a  railroad,  chartering  a  company  to  build 
a  line  from  Philadelphia  to  Columbia.  This  was  the  result 
of  a  memorial  by  John  Stevens,  and  the  corporate  title  was 
"The  President,  Directors  and  Company  of  the  Pennsylvania 
Railroad  Company."  It  was  to  exist  fifty  years  and  have  a 
capital  of  six  thousand  shares  of  $100  each.  Horses  were  to 
be  the  motive  power,  no  reference  being  made  to  using  steam. 
The  project  was  regarded  as  experimental,  and  was  not  utilized 
until  much  later,  and  then  by  the  State  itself,  beginning  the 
location  in  1828.  Canals  being  the  favorite  form  of  internal 
improvement,  Pennsylvania,  in  April,  1825,  created  a  Board 
of  Canal  Commissioners  to  manage  them.  The  Philadelphia 
Bank  having  in  view  the  penalties  for  suspending  specie  pay- 
ments, had  already  begun  curtailing  its  note  issues,  and  in 
1824,  in  deference  to  the  provisions  of  the  new  charter,  they 
were  reduced  to  $298,000,  and  in  1830  were  down  to  $281,500. 
The  specie  held  in  1824  was  $185,000;  and  in  1830,  $219,000. 

Better  things  came  by  1825,  and  business  was  more  pros- 
perous. Pennsylvania  had  devoted  $6,000,000,  chiefly  raised 
by  loans,  to  improvements,  and  they  began  to  show  com- 
mercial results.  The  industrial  and  financial  difficulties  of 
the  previous  period  were  being  surmounted.  During  several 
years  the  records  of  the  Philadelphia  Bank  show  loans  to  the 
State  and  to  the  Canal  Commissioners  to  carry  on  the  public 
works.  Thus,  in  July,  1827,  it  took  $40,000  five  per  cent,  loan 
of  the  State  at  104I.  In  May,  1829,  it  made  a  temporary  loan 
of  $50,000  for  canal  purposes,  the  State  then  being  much  crip- 
pled by  the  heavy  charges  upon  it  for  these  public  works;  and 
in  July  it  made  another  similar  temporary  loan  of  $30,000.     In 


Removal  of  the  Deposits  8$ 

October  a  third  temporary  loan  of  $61,000  was  made  with 
stipulations  for  its  expenditure  upon  the  Susquehanna  and 
Juniata  Canals.  In  this  connection,  at  the  close  of  1829,  the 
State  Government  began  the  necessary  preliminaries  to  get 
from  the  Philadelphia  Bank  the  loan  provided  for  in  the 
charter,  of  five  per  cent,  of  the  capital  at  five  per  cent,  interest, 
and  this  amount,  $90,000,  was  placed  to  the  credit  of  the  State 
in  February,  1830. 

Out  of  these  transactions  there  came  a  movement  to  get  the 
Bank  charter  extended  ten  years  beyond  1839  in  return  for  a 
loan  to  the  State  of  $500,000.  A  bill  passed  the  State  Senate 
for  this  purpose,  but,  being  obstructed,  the  Philadelphia  Bank 
directors  sent  a  committee  to  Harrisburg  offering  a  loan  as 
high  as  $2,000,000  at  five  per  cent,  for  the  charter  extension. 
The  movement,  however,  came  to  naught,  and  we  find  the 
Bank  selling  to  John  Jacob  Astor,  in  January,  183 1,  $90,000 
of  its  State  loan. 


REMOVAL  OF  THE  DEPOSITS 

Events  had  been  rapidly  progressing  in  fomenting  the  great 
quarrel  between  President  Andrew  Jackson  and  the  Bank  of 
the  United  States.  This  is  said  to  have  had  its  inception  in 
the  refusal  of  President  Nicholas  Biddle,  of  the  bank,  to  re- 
move from  the  presidency  of  the  branch  bank  at  Portsmouth, 
New  Hampshire,  in  the  summer  of  1829,  Jeremiah  IMason, 
who  was  a  friend  of  Daniel  Webster.  Jackson's  message  to 
Congress  at  the  opening  of  the  session,  the  subsequent  Decem- 
ber, began  the  attack  upon  the  bank.  He  said  that  "both  the 
constitutionality  and  the  expediency  of  the  law  creating  this 
bank  are  well  questioned  by  a  large  portion  of  our  fellow- 
citizens,  and  it  must  be  admitted  by  all  that  it  has  failed  in  the 
great  end  of  establishing  a  uniform  and  sound  currency." 


84  The  Philadelphia  Bank 

This  position  taken  by  the  President  of  the  United  States,  then 
somewhat  startled  the  country,  but  the  matter  seems  to  have 
slumbered  until  1832. 

The  time  for  the  expiration  of  the  United  States  Bank  charter 
in  1836  was  approaching,  and  the  sentiment  in  Philadelphia 
strongly  favored  its  renewal.  In  February,  1832,  the  Phila- 
delphia Bank  directors  sent  a  memorial  to  Congress,  in  accord- 
ance with  this  sentiment,  asking  the  passage  of  an  act  extending 
the  charter.  In  this  paper  the  United  States  Bank  was  de- 
scribed as  having  "aided  the  fiscal  operations  of  the  Govern- 
ment in  the  collection  and  distribution  of  the  public  funds; 
furnished  a  sound  circulating  medium  which  may  be  con- 
sidered at  par  in  all  parts  of  the  Union ;  facilitated  the  general 
operations  of  trade  and  commerce,"  and  "by  the  diffusion  of 
its  capital  advanced  the  prosperity  of  the  people."  The  paper 
continued  "that  the  general  prosperity  of  the  nation  is  inti- 
mately connected  with  the  continuance  of  the  Bank  of  the 
United  States,  and  that  the  refusal  of  your  honorable  bodies 
to  grant  a  renewal  of  the  charter,  will  be  attended  with  the 
most  disastrous  results,  causing  a  great  depreciation  in  the 
value  of  real  and  personal  estate,  and  widespread  commercial 
embarrassment  and  ruin." 

Congress  passed  the  bill  to  recharter  the  bank,  but  Presi- 
dent Jackson,  on  July  10,  1832,  vetoed  it.  This  caused  great 
excitement  and  bitter  feeling,  a  Presidential  veto  having  been 
practically  unknown  down  to  that  time.  The  political  ani- 
mosity grew,  and  President  Jackson  determined  to  remove  the 
Federal  deposits  from  the  United  States  Bank,  the  officials 
sending  circulars  in  August,  1833,  to  various  State  banks,  in- 
quiring if  they  would  receive  the  deposits.  Amos  Kendall 
came  to  Philadelphia  on  this  errand,  and  announced  that  he 
had  been  appointed  by  the  Secretary  of  the  Treasury,  at  the 
request  of  the  President,  to  confer  with  the  State  banks  on  the 


Removal  of  the  Deposits  85 

subject.  He  notified  the  Philadelphia  Bank  of  his  arrival, 
and  on  August  8th  the  board  passed  a  resolution  that  he  be 
informed  "the  Philadelphia  Bank  is  willing  to  undertake  the 
agency  of  the  Government  in  the  collection  and  management  of 
its  funds  in  the  State  of  Pennsylvania,  and  that  the  board  will 
be  happy  to  receive  further  communications  on  the  subject." 

On  September  i8th  President  Jackson  read  to  the  Cabinet 
his  reasons  for  the  removal  of  the  deposits  from  the  United 
States  Bank.  He  declared  the  bank  had  entered  politics,  and 
used  its  vast  influence  in  promulgating  certain  principles  which 
were  not  those  held  by  the  Government ;  that  in  sixteen  months, 
ending  shortly  before  the  veto,  the  bank  had  increased  its  loans 
over  $28,000,000  with  the  intention  of  bringing  a  large  number 
of  people  under  its  influence,  a  considerable  portion  of  this 
amount  being  appropriated  for  subsidizing  the  press.  For 
these  and  other  reasons,  the  President  declared,  it  was  no 
longer  safe  to  allow  the  public  moneys  to  remain  in  possession 
of  the  United  States  Bank.  The  law  placed  the  deposits  under 
control  of  the  Secretary  of  the  Treasury,  and  Louis  McLane, 
of  Maryland,  who  held  that  office,  showing  repugnance,  was 
made  Secretary  of  State,  and  William  J.  Duane,  of  Philadel- 
phia, appointed  his  successor.  Duane  declined  to  order  the 
removal,  and  was  himself  removed,  being  succeeded  by  Roger 
B.  Taney,  who  carried  out  Jackson's  wishes,  and  October  i, 
1833,  was  named  as  the  day  for  the  withdrawal. 

Great  efforts  were  made  on  behalf  of  the  Bank  of  the 
United  States  to  prevent  the  removal  of  the  deposits.  The 
plan  of  the  Treasury  was  to  select  State  banks  in  different  parts 
of  the  country  to  which  the  deposits  would  be  transferred. 
There  was  to  be  one  bank  each  in  Philadelphia,  Boston,  and 
Baltimore,  two  banks  in  New  York,  with  others  in  the  South. 
They  were  to  receive  the  public  deposits  in  the  States  where 
located,  and  make  payments  when  and  where  required,  in 


86  The  Philadelphia  Bank 

accordance  with  an  elaborate  plan  formed  by  Mr.  Kendall, 
and  were  to  render  without  charge  every  service  performed  by 
the  Bank  of  the  United  States.  The  Philadelphia  Bank  re- 
ceived various  proposals  on  the  subject  of  becoming  a  deposi- 
tory from  Mr.  Kendall,  and  replied  to  him  on  September  26th, 
suggesting  some  modifications,  but  accepting  most  of  his 
proposals.  The  result  of  the  negotiation  was  that  on  Octo- 
ber 17th  Cashier  Campbell  and  John  M.  Read,  the  solicitor 
(the  son  of  President  Read),  representing  the  Bank,  went  to 
Washington  and  presented  Secretary  Taney  a  letter  stating 
that  the  Bank  "will  take  the  whole,  or  a  part  of  the  Govern- 
ment deposits  in  the  State  of  Pennsylvania,  upon  the  same 
terms  which  any  other  Banks  have  accepted  them,  in  any  part 
of  the  United  States.  We  are  also  directed  by  the  Board  to 
assure  the  Secretary  of  the  Treasury  that  the  Philadelphia 
Bank  will  use  its  best  efforts  to  perform  all  the  required  duties 
under  the  proposed  management." 

The  deposits,  amounting  to  nearly  $8,000,000,  were  re- 
moved from  the  Bank  of  the  United  States,  but  none  came  to 
the  Philadelphia  Bank.  Stephen  Girard  had  died  December 
26,  1 83 1,  and  his  banking  house  on  Third  Street  was  utilized 
by  the  Girard  Bank,  chartered  April  2,  1832,  with  $1,500,000 
capital,  and  this  new  bank  was  made  the  depository  of  the 
Government  moneys  in  Philadelphia  late  in  1833,  and  it  thus 
got  very  large  Treasury  deposits,  which  soon  exceeded  half 
the  then  capital  of  the  bank.  The  removal  of  the  deposits 
caused  great  public  anxiety,  and  was  followed  by  a  general 
curtailment  of  loans  by  the  Bank  of  the  United  States,  causing 
serious  distress.  The  Philadelphia  Bank  directors  afterward 
changed  their  views  on  the  subject  of  the  deposits,  and  on 
December  30,  1833,  voted  to  withdraw  their  application  to  the 
Secretary  of  the  Treasury  for  a  Government  deposit;  and  they 
also  adopted  two  memorials,  one  sent  by  various  State  banks 


The  Panic  of  1837  87 

jointly  on  December  30th  to  Congress  for  a  restoration  of  the 
deposits  to  the  Bank  of  the  United  States,  and  the  other,  sent 
January  9,  1834,  to  the  State  Legislature  inviting  their  inter- 
position with  Congress  to  that  end.  On  January  16,  1834,  an 
elaborate  protest  was  filed  by  three  of  the  four  State  directors 
of  the  Philadelphia  Bank  against  these  memorials. 

The  financial  distress  in  Philadelphia  led  the  City  Councils 
to  pass  resolutions  against  the  removal  of  the  deposits,  among 
the  reasons  urged  being  the  fact  that  the  securities  of  the  Girard 
Estate  left  in  trust  to  the  city  had  depreciated  in  value  through 
this  removal  $312,304.  The  Board  of  Trade,  January  i,  1834, 
passed  similar  resolutions,  asking  the  restoration  of  the  Bank 
of  the  United  States  to  its  former  place  as  an  agent  of  the 
Government  as  a  necessary  step  to  restore  public  confidence. 
There  were  then  fifteen  banks  in  Philadelphia,  and  nine  of 
them  joined  in  a  memorial  stating  that  the  removal  of  the 
deposits  had  made  "a  disorganization  of  the  whole  moneyed 
system,  and  the  whole  revenue  system  of  the  country,"  and 
declaring  their  restoration  to  the  bank  a  measure  that  was 
absolutely  necessary.  The  banks  signing  this  memorial  were 
North  America,  Pennsylvania,  Farmers'  and  Mechanics', 
Commercial,  Mechanics',  Penn  Township,  Manufacturers' 
and  Mechanics',  Moyamensing,  and  Schuylkill.  The  six 
banks  that  did  not  sign  were  the  Philadelphia,  Western, 
Southwark,  Kensington,  Northern  Liberties,  and  Girard. 


THE  PANIC  OF  1837 

The  quarrel  between  Jackson  and  the  United  States  Bank 
grew,  and  made  the  most  intense  enmities.  The  efforts  to  get 
the  deposits  restored  were  fruitless.  The  President  fully  con- 
trolled Congress  against  the  bank.  His  party  attacked  Nich- 
olas Biddle,  its  head,  as  a  despot  who  sought  to  extend  the  rule 


88  The  Philadelphia  Bank 

of  a  moneyed  aristocracy  over  the  nation,  while  the  friends 
of  the  bank  denounced  Jackson  in  unmeasured  terms.  The 
more  they  abused  him,  the  higher  grew  his  temper.  He  drove 
away  from  his  presence  the  deputations  sent  to  seek  favor  for 
the  bank;  and  is  said  to  have  replied  to  a  delegation  from 
Baltimore,  which  asked  for  relief:  ''Come  not  to  me,  sir,  go  to 
the  monster.  It  is  folly,  sir,  to  talk  to  Andrew  Jackson;  the 
Government  will  not  bow  to  the  monster!" 

When  the  annual  election  of  directors  in  November,  1835, 
came,  Quintin  Campbell,  the  cashier,  who  had  served  so  faith- 
fully for  thirty  years,  resigned,  much  to  the  general  regret,  and 
retired  from  active  business.  The  board  presented  him  with 
a  handsome  silver  service  as  a  testimonial  of  respect  and  esteem, 
and  he  was  immediately  elected  a  director  by  the  stockholders, 
serving  continuously  until  his  retirement  in  1859,  making  a 
period  of  over  fifty-five  years  from  the  time  he  began  duty  at 
the  beginning  of  the  Bank.  Mr.  Campbell  had  been  an 
original  subscriber  to  the  stock  of  the  Pennsylvania  Fire  In- 
surance Company,  upon  its  incorporation  in  January,  1825.  In 
September,  1826,  he  was  elected  a  director  of  this  Insurance 
Company  and  served  continuously  until  his  death.  Some 
time  after  his  resignation  as  cashier  of  the  Philadelphia  Bank, 
he  was  elected  president  of  the  Insurance  Company  in  Decem- 
ber, 1839,  and  resigned  from  the  presidency  in  June,  1853. 
Mr.  Campbell  died  April  6,  1863.  His  successor  as  cashier 
of  the  Philadelphia  Bank  was  John  B.  Trevor,  elected  Novem- 
ber 30,  1835,  who  served  until  his  resignation,  August  28,  1851. 

As  the  time  approached  for  the  expiration  of  the  United 
States  Bank  charter  in  1836,  the  State  of  Pennsylvania  in 
February  renewed  it  as  a  State  bank  for  thirty  years,  passing 
the  act  thirteen  days  prior  to  the  expiration.  It  thus  went 
under  State  control  with  the  same  capital,  exclusive  of  the 
Government  investment  of  $7,000,000.     This  investment  was 


The  Panic  of  1837  89 

repaid  in  full  when  the  Federal  bank  was  wound  up,  and  the 
Treasury  records  showed  there  had,  in  addition,  been  made 
a  profit  on  the  stock  of  $6,093,167,  as  regular  dividends 
had  been  paid,  and,  in  addition,  a  premium  of  over  fifteen  per 
cent,  was  returned  above  the  par  value  of  the  Government 
stock.  The  Bank  had  been  of  great  service  in  regulating  the 
currency,  and  during  its  twenty  years'  existence  had  brought 
out  from  Europe  to  maintain  specie  payments  nearly  $7,000,000 
coin,  at  a  cost  for  expenses  and  exchange  of  $500,000.  The 
prosperous  times  which  had  come  resulted  in  such  ample 
government  revenues  that  by  1835  the  entire  public  debt  of  the 
United  States  left  after  the  close  of  the  war  with  England  had 
been  paid  off. 

The  new  bank  paid  a  good  price  for  the  State  charter,  a 
bonus  to  Pennsylvania  of  $2,000,000,  extending  over  ten  years, 
the  money  to  be  used  for  the  schools.  Nicholas  Biddle  at  once 
resigned  the  presidency  of  the  Federal  bank  and  was  pre 
sented  by  the  stockholders  with  a  magnificent  service  of  plate 
valued  at  $30,000.  He  was  then  chosen  president  of  the  State 
Bank  of  the  United  States,  which  began  business  ]\Iarch  4, 
1836.  As  part  of  the  same  legislative  procedure  which  obtained 
the  United  States  Bank  charter,  there  was  also  passed  on  April 
I  St  the  act  already  referred  to,  extending  the  Philadelphia 
Bank  charter  for  twenty  years,  until  1859.  The  success  of 
this  was  due  largely  to  the  efforts  of  Cashier  Trevor,  who  spent 
much  time  at  Harrisburg  during  the  session.  The  stockholders 
in  formal  meeting  on  May  9,  1836,  accepted  the  new  charter 
extension,  and  as  an  expression  of  their  gratitude  to  the  cashier 
voted  $1,000  to  procure  a  service  of  plate  for  presentation  to 
him.  They  also  ordered  a  new  banking  house  to  be  built,  as 
the  Bank  had  outgrown  the  old  one.  It  is  noteworthy  that 
on  the  same  day  as  the  Philadelphia  Bank  charter  extension, 
April  I  St,  the  law  was  also  passed,  which  still  exists,  requiring 


90  The  Philadelphia  Bank 

all  State  banks  to  make  quarterly  reports  to  the  Auditor- 
General.  When  it  had  gotten  fully  under  way  as  a  State 
institution,  the  United  States  Bank  shares  were  quoted  at  125 
and  the  Philadelphia  Bank  shares  were  at  125  @  130. 

Congress  in  1836  passed  an  act  regulating  the  Government 
deposits  in  the  various  State  banks,  and  this  caused  the  Phila- 
delphia Bank  directors  to  make  another  effort  to  become  a 
depository.  Committees  were  sent  to  Washington  at  various 
times  to  secure  part  of  the  deposits,  and  interviews  were  had 
with  the  Secretary  of  the  Treasury,  but  the  journeys  were  with- 
out result.  The  Girard  Bank  had  increased  its  capital  to 
$5,000,000,  and  secured  a  continuance  of  the  Government 
deposits  under  the  new  Act,  the  amount  it  held  soon  running 
up  to  $3,600,000.  The  evanescent  character  of  this  business, 
however,  was  shown  the  next  year,  when  all  the  money  was 
drawn  out  of  the  Girard  Bank  but  $10,000,  and  in  1838  the 
Treasury  deposit  it  held  was  less  than  $1,000.  The  large 
excess  of  revenues  in  the  Federal  treasury,  accumulating  after 
the  national  debt  was  paid,  had  caused  a  clamor,  and  the  very 
peculiar  method  was  devised  of  remedying  this  by  dividing 
the  surplus  cash  among  the  various  States  in  proportion  to 
population.  There  were  thus  disposed  of  $28,000,000  early 
in  1837,  causing  the  Federal  depository  banks  to  lose  nearly 
all  their  Government  deposits.  Anticipating  this,  the  Philadel- 
phia Bank  then  sought  to  be  made  a  depository  of  the  portion 
of  surplus  accruing  to  Pennsylvania.  In  December,  1836, 
the  members  of  the  Electoral  College,  who  had  voted  for 
President  Van  Buren,  and  large  numbers  of  members  of  the 
Legislature  joined  in  petitions  to  the  Secretary  of  the  Treasury, 
recommending  that  the  Philadelphia  Bank  be  selected  as  a 
depository  of  these  surplus  funds.  The  J&nal  result  was  that, 
joining  with  the  Pennsylvania  Bank,  the  two  institutions  got 
this  Pennsylvania  surplus  on  deposit  by  an  offer  to  pay  six  per 


The  Panic  of  1837  9^ 

cent,  interest  for  it,  on  March  6,  1837,  and  the  money  was  em- 
ployed in  discounting. 

But  the  country  was  again  on  the  verge  of  bad  times.  The 
Government  war  against  banks  continued.  The  supply  of 
specie  in  the  country  was  small,  the  mint  having  coined  barely 
$50,000,000  since  its  start  in  1792,  which  had  been  depleted  by 
steady  exports,  and  the  Treasury  now  required  that  all  pay- 
ments for  public  lands  should  be  made  exclusively  in  gold  or 
silver,  while  payments  for  the  excessive  imports  of  merchandise 
again  drew  coin  largely  to  Europe.  The  winter  of  1836-37 
saw  much  business  distress  and  many  failures,  and  the  rapid 
disappearance  of  coin  from  circulation  made  it  almost  impos- 
sible to  conduct  commercial  operations.  It  was  at  this  period 
that  the  Philadelphia  Bank,  in  1837,  moved  into  its  third 
bank  building.  This  fine  structure  on  the  southwest  corner  of 
Fourth  and  Chestnut  Streets,  had  been  for  some  time  in  process 
of  erection,  being  occupied  jointly  by  the  Philadelphia  Bank 
and  the  Bank  of  the  United  States.  It  was  a  white  marble 
building,  extending  with  a  broad  front  on  Chestnut  Street, 
and  in  part  was  built  upon  the  portion  of  the  original  lot  which 
had  previously  been  a  garden.  The  Philadelphia  Bank  occu- 
pied the  second  floor;  the  ground  floor  being  rented,  yielding 
over  $3,000  per  annum. 

The  business  stress  and  difficulty  of  retaining  specie  be- 
came so  great,  with  sterling  exchange  at  twenty  per  cent, 
premium,  that  on  May  10,  1837,  the  banks  of  New  York  city 
suspended  specie  payments.  The  news  of  this  action  reached 
Philadelphia  that  morning,  and  next  day  the  banks  in  this  city 
suspended,  the  course  being  immediately  followed  by  all  the 
banks  throughout  the  country.  The  Philadelphia  Bank  sus- 
pended specie  payments  with  the  others,  transmitted  the  reso- 
lution ordering  suspension  to  the  Governor,  and  determined  to 
receive  the  notes  of  the  other  city  banks  as  usual.     In  subse- 


92  The  Philadelphia  Bank 

quent  proceedings  the  directors  decided  not  to  unduly  enlarge 
their  note  issues,  and  to  keep  steadily  in  view  an  early  resump- 
tion. The  need  of  small  change,  caused  by  the  disappearance 
of  coin  from  circulation,  was  supplied  at  this  juncture  by  the 
city  and  outlying  districts,  which  issued  paper  notes  for  frac- 
tional parts  of  a  dollar.  Then  there  came  another  deluge  of 
"shinplasters"  issued  by  various  irresponsible  parties,  and 
with  them  serious  troubles,  great  suffering,  numerous  suspen- 
sions, declines  in  wages,  and  universal  distress.  This  condi- 
tion continued  throughout  the  subsequent  winter,  but  times 
becoming  somewhat  improved,  efforts  were  made  in  1838  to 
secure  a  resumption.  The  New  York  Legislature  fixed  August 
13th  as  the  date  for  a  return  to  specie  payments  by  the  banks 
of  that  State,  and  Governor  Ritner  issued  a  proclamation  in 
July  ordering  all  the  banks  in  Pennsylvania  to  resume  on  the 
same  date.  This  led  to  a  partial  movement  by  the  other  banks 
of  the  country  to  resume  at  the  same  time.  The  interior  banks, 
however,  did  not  join,  and  their  abstention  made  additional 
troubles,  causing  great  differences  in  the  discounts  and  pre- 
miums on  bank  notes. 

This  resumption  of  1838  w^as  premature.  There  was  not 
enough  specie  available  to  maintain  it,  especially  as  the  banks 
in  Philadelphia,  under  a  law  passed  in  1827,  were  not  per- 
mitted to  issue  notes  for  less  than  five  dollars,  and,  therefore, 
had  to  pay  small  sums  in  specie,  which  was  thus  steadUy 
drained  out  of  them.  The  year  1839  came,  and  matters  went 
from  bad  to  worse.  Early  in  the  year  another  suspension  was 
feared,  and  there  was  a  constant  stream  of  the  precious  metals 
sent  abroad  by  every  packet,  Europe  drawing  her  capital  away 
as  fast  as  was  possible.  On  March  29,  1839,  Nicholas  Biddle 
resigned  the  presidency  of  the  United  States  Bank,*  being 
succeeded  by  Thomas  Dunlap.     In  July  exchange  had  gotten 

*  Nicholas  Biddle  died  February  27,  1844. 


End  of  the  United  States  Bank 


93 


to  ten  per  cent,  premium;  money  loaned  at  i|  per  cent,  per 
month;  United  States  Bank  stock  decHned  to  in,  and  Phila- 
delphia Bank  stock  to  103.  In  the  autumn  specie  was  being 
sent  abroad  by  millions,  and  the  banks  began  conferring  as  to 
the  policy  of  another  suspension.  A  meeting  was  held  by 
representatives  of  fourteen  banks  at  the  Board  of  Trade, 
October  8th,  and  they  voted  upon  a  resolution  for  suspension, 
which  was  defeated,  five  to  nine,  the  Philadelphia  Bank  voting 
in  the  negative. 

The  next  day,  October  9,  1839,  the  Philadelphia  Bank 
committee  reported  this  action  to  the  board,  but  no  sooner  had 
they  done  so  than  a  communication  was  received  from  the 
United  States  Bank,  next  door,  that  they  had  suspended. 
This  was  unexpected,  but  the  other  banks  had  to  follow,  and 
the  same  day  the  Philadelphia  Bank,  with  the  others,  passed 
resolutions  for  an  immediate  suspension  of  specie  payments, 
which  action  was  followed  by  the  banks  throughout  the  country. 
The  United  States  Bank  explained  that  its  course  was  due  to 
embarrassment  arising  from  the  large  balance  of  foreign  ex- 
change against  the  United  States,  which  was  draining  its 
specie,  but  the  real  reason  was  that  the  great  bank,  as  the  sequel 
proved,  was  really  insolvent.  In  November,  owing  to  defal- 
cations, the  Schuylkill  Bank  was  closed.  Then  the  famous 
Dr.  Thomas  W.  Dyott,  who  had  extensively  issued  notes  of  his 
"Manual  Labor  Bank,"  which  he  did  not  redeem,  was  im- 
prisoned for  fraud,  but  afterward  pardoned. 

END  OF  THE  UNITED  STATES  BANK 

The  repeated  suspensions  by  the  banks  led  Congress  to 
create  the  sub-treasury  system,  thus  keeping  the  Government 
money  in  the  Treasury  vaults,  instead  of  in  banks.  This  was 
adopted  during  President  Van  Buren's  administration,  and 


94  The  Philadelphia  Bank 

suspended  for  a  time  in  1841,  when  President  Harrison  as- 
sumed office,  but  finally  put  into  effective  operation  in  1842, 
the  system  continuing  ever  since,  though  with  modifications. 
The  great  effort  after  1839  was  to  compel  the  banks  to  resume 
specie  payments;  and  the  obstacle  was  the  inability  of  the 
United  States  Bank  to  do  so.  Governor  Porter,  in  his  message, 
called  the  attention  of  the  Pennsylvania  Legislature,  in  1840, 
to  the  general  bank  suspensions,  urging  remedial  measures. 
The  banks  in  Philadelphia,  in  February,  sent  an  address  to  the 
Legislature,  declaring  they  could  not  with  safety  resume  before 
February  i,  1841,  and  the  Board  of  Trade  confirmed  this 
declaration.  The  Legislature  passed  a  drastic  law,  directing 
resumption  of  specie  payments  by  the  banks,  January  15,  1841, 
under  penalty  of  forfeiture  of  their  charters. 

There  now  began  various  interesting  movements  designed  to 
sustain  the  Bank  of  the  United  States,  so  as  to  secure  a  success- 
ful resumption  at  the  time  appointed.  Prominent  in  these 
was  Richard  D.  Wood,*  the  merchant  and  manufacturer,  who 
was  first  chosen  a  director  of  the  Philadelphia  Bank  in  1835, 
and  again  in  1837  and  successive  years,  until  his  retirement  in 
1864.  During  the  summer  of  1839,  Mr.  Wood  casually  met 
James  Martin,  one  of  the  directors  of  the  United  States  Bank, 
and  remarked  to  him  that  as  the  period  for  the  resumption  fixed 
by  law  was  fast  approaching,  it  was  quite  time  to  put  things  in 
order  for  it.  In  subsequent  conversation  the  two  gentlemen 
agreed  as  to  method,  and  Mr.  Wood  brought  the  subject  before 
the  Philadelphia  Bank  board,  and  Mr.  Martin  presented  it  at 
the  United  States  Bank.  The  latter  appointed  a  committee 
consisting  of  Lewis  Wain,  James  Martin,  and  Joseph  Cubot. 
With  Mr.  Wood,  in  the  Philadelphia  Bank,  were  associated 
two  veteran  directors,  Samuel  F.  Smith,  afterward  becoming 
in  1842  the  president,  first  elected  a  director  in  1807,  ^.nd  re- 

*  Richard  D.  Wood  died  April  i,  1869,  aged  sixty-nine. 


End  of  the  United  States  Bank  95 

tiring  from  the  presidency  in  1852,  and  Samuel  W.  Jones,* 
who  was  elected  a  director  in  18 14,  and  served  continuously 
until  1852,  when  he  retired. 

The  first  movement  toward  this  process  was  taken  by  the 
Philadelphia  Bank  in  September,  1840,  when  it  was  announced 
that  the  committee  appointed  in  August  to  confer  with  the 
United  States  Bank  had  been  informed  that  it  could  not  resume 
unless  the  indebtedness  it  owed  the  other  banks  could  remain 
intact.  The  Philadelphia  Bank  agreed  to  this,  its  share  of 
the  indebtedness  not  to  exceed  $1,000,000.  Upon  the  motion 
of  Mr.  Smith,  Messrs.  Wood  and  Jones  went  into  joint  com- 
mittee on  the  subject  with  ten  other  city  banks,  the  result  being 
that  the  united  banks  agreed  to  loan  the  Bank  of  the  United 
States  about  $5,000,000,  by  extending  their  indebtedness  for 
thirteen  and  one-half  months,  and  to  aid  in  this,  the  banks  of 
New  York  and  New  England  were  to  be  requested  to  loan  the 
banks  of  Philadelphia  about  half  that  sum,  so  that  individual 
debtors  in  this  city  need  not  be  pushed.  It  took  nearly  four 
months'  negotiation  to  accomplish  the  latter,  the  joint  banks 
appointing  a  committee  of  three,  John  White,  of  the  Penn- 
sylvania Bank,  Robert  Howell,  of  the  Farmers'  and  Mechanics' 
Bank,  and  Mr.  Wood,  who  went  to  New  York  and  Boston  on 
this  errand  and  arranged  the  loans.  It  was  noted  at  the  time 
that  exchange  in  Philadelphia  on  New  York  had  risen  to  four 
per  cent,  premium.  It  is  noteworthy  also  that  in  the  joint 
meeting  of  the  committees  representing  the  various  banks  in 
this  negotiation,  Thomas  Robins  appears  as  secretary,  he  then 
representing  the  Bank  of  North  America.  Mr.  Robins  in 
1852  succeeded  Mr.  Smith  as  president  of  the  Philadelphia 
Bank.  The  amount  the  Philadelphia  Bank  was  to  borrow 
in  the  arrangement  was  $600,000. 

Upon  October  24,  1840,  the  committee  of  the  United  States 

*  Samuel  W.  Jones  died  in  November,  1873,  aged  ninety-three. 


96  The  Philadelphia  Bank 

Bank  was  notified  that  the  $5,000,000  was  available,  and  re- 
plied that  it  would  be  sufficient  for  the  purposes  of  resumption, 
the  bank  having  obtained  $1,000,000  additional,  so  that  thus 
had  been  arranged  "the  postponement  of  $6,000,000  of  the 
immediate  liabilities  of  the  Bank."  The  position  of  the 
Philadelphia  Bank,  when  it  thus  engaged  to  let  the  United 
States  Bank  be  $1,000,000  debtor,  and  to  do  this  was  ready  to 
borrow  $600,000,  is  shown  by  the  statement  of  November  9, 
1840.  The  aggregate  assets  were  $4,068,985.  These  in- 
cluded $1,301,711  bills  discounted,  $495,719  investments, 
$266,018  due  from  foreign  banks,  and  $2,005,537  money,  of 
which  $315,162  was  specie,  $561,481  due  from  city  banks, 
and  $1,128,894  notes  of  other  banks.  The  liabilities  were 
$1,087,905  deposits,  $60,433  notes  in  circulation,  $91,500  post 
notes,  $59,511  due  city  banks,  and  $989,557  due  foreign  banks. 
It  had  suspended  specie  payments,  but  was  very  strong. 
The  Bank  held  2578  shares  of  its  own  stock,  and  in  the 
statement  these  were  deducted  from  the  capital,  which  was 
thus  reduced  from  $1,800,000  to  $1,542,200,  and  it  reported 
surplus  and  profits  of  $180,942.  During  the  two  decades 
from  1 82 1  to  1840,  the  dividends  aggregated  105  per  cent. 

Upon  January  14,  1841,  the  day  before  the  date  fixed  for 
resumption,  the  Bank  of  the  United  States  made  a  further 
most  unexpected  demand  upon  the  Philadelphia  Bank,  that, 
in  addition  to  all  the  money  already  advanced,  it  should  take  a 
further  sum  of  $375,000  in  sterling  bills,  with  like  arrangements 
by  the  other  city  banks,  without  which  additional  help  it  could 
not  resume.  This  was  most  reluctantly  acceded  to,  the  board, 
according  to  the  record  of  its  proceedings,  being  in  the  dilemma 
"either  to  accede  to  the  proposal  or  risque  a  resumption  with- 
out the  Bank  of  United  States  under  its  heavy  indebtedness." 
It  thus  placed  nearly  seven-eighths  of  its  capital  under  control 
of  the  big  bank,  and  this  compelled  the  decision. 


End  of  the  United  States  Bank  97 

The  resumption  came,  but  it  was  with  universal  pubHc 
distrust  that  the  banks  could  not  maintain  their  position.  The 
Bank  of  the  United  States  had  about  $2,171,000  specie  and 
over  $11,270,000  notes  out.  The  stock  had  declined  to  63, 
and  when  the  doors  opened,  January  15th,  there  was  a  brisk 
demand  for  specie.  This  continued  for  three  weeks,  and  it 
got  all  the  specie  it  could  from  every  possible  source,  and  in 
that  time  had  paid  out  $6,683,321  in  gold  and  silver,  and  on 
February  4th  the  shares  were  quoted  down  to  45I.  The  other 
city  banks  in  the  same  period  had  paid  out  $5,122,732  in  coin, 
the  Philadelphia  Bank  paying  out  over  $1,000,000.  The 
United  States  Bank  could  stand  the  pressure  no  longer,  and 
February  4th  stopped  paying  coin  on  any  notes  above  five 
dollars.  The  other  city  banks  continued  until  the  5th,  when 
most  of  them  stopped  paying  coin  on  any  notes  above  five 
dollars.  The  scheme  was  at  this  time  adopted  of  marking 
checks  "good"  instead  of  paying  them.  The  United  States 
Bank  then  stopped,  and  on  the  13th  memorialized  the  Legisla- 
ture for  relief,  saying  they  had  honestly  attempted  to  carry  out 
the  resumption  law.  There  was  nothing  done  specially  for  the 
bank,  however,  except  an  authorization  to  the  bank  to  make 
an  assignment  for  the  benefit  of  creditors.  This  was  contained 
in  the  ** relief  law"  passed  in  May,  which  authorized  the  other 
State  banks  to  loan  the  State  $3,100,000  in  their  own  notes  of 
denominations  of  five  dollars  or  less. 

The  end  of  the  great  bank  was  approaching.  A  committee 
of  shareholders  examined  its  condition  during  the  spring  of 
1841,  and  reported  an  impairment  of  capital  of  about  $2,000,- 
000.  Suspended  debts  showed  a  loss  of  over  five  millions, 
depreciation  in  stocks  over  seven  millions,  and  over  three 
millions  due  by  State  banks  were  uncollectable.  Foreign 
exchange  had  been  steadily  against  the  country,  and  in  this 
way,  for  years,  the  ''Exchange  Committee,"  a  sort  of  inside 
7 


98  The  Philadelphia  Bank 

power,  had  been  piling  up  foreign  loans,  chiefly  due  in  England 
and  France,  which  had  reached  over  twenty-three  millions. 
Post  notes  had  been  issued  for  part,  and  when  these  fell  due 
they  could  not  be  paid,  and  other  assets  had  to  be  hypothecated. 
The  ''Exchange  Committee"  had  transactions  in  cotton,  ex- 
ported through  Philadelphia  to  Liverpool,  amounting  to 
$9,000,000,  and  this  and  much  else  was  done  without  the 
knowledge  of  the  directors.  It  was  afterward  learned  that 
the  United  States  Bank  had  lost  about  $2,000,000  in  the  cotton 
operations.  The  developments  caused  universal  surprise  and 
the  greatest  consternation  among  the  stockholders,  who  found 
their  shares  unsaleable,  and  dividends  ceasing  reduced  many 
who  had  been  wealthy  to  a  condition  of  poverty.  The  end 
came  on  September  4,  1841,  when  the  United  States  Bank 
made  its  assignment,  and  Mr.  Wood's  diary  mentions  it  with 
the  pointed  remark,  "a  tragic  end  for  an  Institution  of  thirty- 
five  million!"  The  assignees  were  a  long  time  winding  up  its 
affairs.  The  bank  notes  and  deposits  were  paid  in  full,  but  the 
stockholders  lost  everything,  and  the  last  quotation  recorded 
of  United  States  Bank  Stock  was  i  J  in  1843. 


IV 


UPS  AND   DOWNS   OF   EARLY 
BANKING 


1841-1855 


IV 

UPS  AND   DOWNS  OF  EARLY  BANKING 
1841-1855 

Most  Serious  Banki7ig  Depression — Recuperation — Internal 
Iniprove7nents  i?t  Pettnsylvania — Co7itinuing  Prosperity. 

MOST  SERIOUS  BANKING  DEPRESSION 

IT  is  difficult  to-day  to  realize  the  unfortunate  condition  of 
business  affairs  in  the  United  States  at  the  close  of  1841 
and  during  1842.  The  Federal  Government,  like  every 
one  else,  was  almost  stripped  of  specie,  which  was  being  shipped 
abroad  to  pay  debts.  The  Philadelphia  Bank  made  two  ex- 
changes on  requests  from  the  United  States  treasury,  on  April 
I  and  13, 1841,  each  of  $100,000  in  coin  for  treasury  notes  bear- 
ing six  per  cent,  interest.  All  prices  declined.  In  September, 
1841,  after  the  United  States  Bank  assignment,  Philadelphia 
Bank  shares  had  declined  to  70,  and  in  November  the  Bank  had 
to  pass  its  dividend.  The  half-year's  profits,  the  dividend  com- 
mittee reported,  would  warrant  a  dividend  of  three  per  cent., 
but  the  large  debt  due  by  the  United  States  Bank  made  it 
impolitic  to  declare  any  dividend.  Independently  of  this  the 
Philadelphia  Bank  had  a  contingent  fund  or  surplus  of  over 
$200,000.  This  depressing  report  of  the  committee  was  signed 
by  John  Welsh,  Samuel  F.  Smith,  Richard  D.  Wood,  Samuel 
W.  Jones,  and  B.  C.  Cooper,  while  General  Robert  Patterson 
made  the  motion  accepting  the  report  and  passing  the  dividend. 
The  statement  of  the  Philadelphia  Bank  in  November, 


I02  The  Philadelphia  Bank 

1 84 1,  showed  the  deposits  to  be  $986,021  and  the  circulating 
notes  outstanding  $165,253.  The  specie  held  was  $263,016 
and  there  were  post  notes  due  by  the  United  States  Bank 
of  $1,000,000,  with  a  claim  of  $69,454  contingent  interest  there- 
on. This  debt,  equaling  the  greater  part  of  the  capital, 
overweighted  the  Philadelphia  Bank,  as  similar  debts  did 
most  other  banks  in  the  city,  and  caused  them  to  pass  through 
the  period  of  worst  depression  in  their  history.  Two  and 
one-half  years  elapsed  before  the  Philadelphia  Bank  could 
resume  paying  dividends.  It  was  able,  however,  to  take 
care  of  its  notes,  and  appeared  to  always  adopt  the  policy  of 
holding  enough  specie  to  cover  the  whole  outstanding  note 
issue. 

The  most  serious  period  for  the  Philadelphia  Bank  was  the 
year  1842,  but  it  got  on  better  than  most  others,  and  success- 
fully weathered  the  storm.  Richard  D.  Wood,  in  his  diary, 
records  that  on  August  9,  1842,  he  bought  three  shares  of 
Philadelphia  Bank  stock  for  32J,  and  on  September  21st  thirty 
shares  more  for  35.  The  Girard  Bank,  early  in  the  year,  had 
its  notes  thrown  out  by  the  other  banks,  and  closed  its  doors, 
its  shares  declining  to  8J.  This  bank  recovered,  however, 
though  not  until  1849,  when  it  reduced  its  capital  from  $5,000,- 
000  to  $1,250,000  and  resumed  paying  dividends.  The 
Pennsylvania  Bank  got  into  trouble,  and  also  had  its  notes 
thrown  out  by  the  other  banks,  so  that  a  run  began.  It  held 
$800,000  Pennsylvania  State  funds,  part  of  which  was  to  be 
disbursed  for  State  loan  interest  due  February  ist,  and,  the  run 
imperiling  this  deposit.  Governor  David  R.  Porter  came  to 
Philadelphia,  with  his  Attorney- General,  to  take  legal  pro- 
ceedings to  protect  the  State  moneys  and  secured  an  injunction. 
The  Pennsylvania  Bank  applied  to  the  other  banks  for  help, 
and  the  Philadelphia  Bank  loaned  it  $30,000  at  the  end  of 
January.     Its  available  securities  were  so  poor  in  value,  how- 


Most  Serious  Banking  Depression  103 

ever,  that  a  record  is  made  of  this  fact  as  a  reason  why  the 
banks  jointly  could  not  loan  upon  them.  The  Pennsylvania 
Bank  could  not  pay  the  State  interest  due  February  ist,  and 
on  that  day  the  Philadelphia  Bank  joined  with  others  in  loaning 
the  State  $300,000  to  pay  the  interest,  which,  after  various 
delays,  was  paid  to  the  loan  holders  in  March.  The  Penn- 
sylvania Bank  stopped  payment  for  some  time  and  considered 
making  an  assignment,  but  it  managed  to  struggle  through 
without  this,  and  ultimately  regained  a  sound  position. 

The  tremendous  strain  of  carrying  on  the  Philadelphia 
Bank  under  such  unfavorable  conditions  had  been  wearing 
upon  the  president,  John  Read,  and  on  February  5,  1842,  he 
resigned  the  presidency  and  also  as  a  director.  It  was  with 
great  regret  that  the  resignation  was  accepted,  and  the  board 
adopted  a  series  of  appropriate  resolutions,  to  which  Mr.  Read 
made  a  very  feeling  response  on  February  8th.  At  the  same 
meeting,  his  son,  John  M.  Read,  also  resigned  as  solicitor  of 
the  Bank.  The  venerable  director,  Samuel  F.  Smith,  was 
elected  president  as  the  successor  to  Mr.  Read,  but  he  accepted 
somewhat  reluctantly,  saying  that  he  could  not  become  the 
permanent  officer,  but  might  retire  when  circumstances  made 
it  necessary,  as  his  health  was  infirm.  He  continued  in  office 
until  1852,  but  nearly  every  year  he  desired  to  resign,  and  the 
board  and  the  stockholders  would  not  permit  it.  The  minute- 
book  records  several  very  elaborate  and  earnest  letters  which 
the  gentleman  wrote  in  presenting  successive  resignations, 
which  he  was  persuaded,  however,  to  withdraw.  He  brought 
the  Bank  successfully  through  its  great  difficulties,  and  when 
he  finally  closed  his  service  as  president,  it  was  again  in  pros- 
perous condition. 

Samuel  F.  Smith  was  a  native  of  Philadelphia  and  a  promi- 
nent merchant.  He  was  first  elected  a  State  director  of  the 
Philadelphia  Bank  by  the  Legislature  in  1807,  serving  one  year. 


I04  The  Philadelphia  Bank 

The  stockholders  elected  him  a  director  in  1813,  and  he  served 
continuously  until  his  final  resignation,  November  18,  1861, 
a  period  of  forty-eight  years.  He  was  the  president  from 
February  5,  1842,  until  January  19,  1852,  nearly  ten  years. 
Mr.  Smith  died  August  24,  1862.  He  was  a  merchant  of  high 
repute,  and  a  gentleman  of  fine  literary  tastes,  of  which  the 
records  of  the  Bank  give  ample  testimony  in  his  letters  and 
other  documents. 

The  suspension  of  the  Girard  and  Pennsylvania  Banks  had 
caused  the  other  banks  of  the  city  to  join  in  efforts  to  with- 
stand a  general  run,  which  was  threatened  in  the  excited  state 
of  the  public  mind,  and  they  formed  a  "bank  league,"  con- 
tributing $75,000  for  every  $500,000  capital  to  a  fund  pledged 
for  the  redemption  of  notes.  The  run  soon  began  on  the 
Moyamensing  Bank,  afterward  the  Bank  of  Commerce,  but 
the  league  fund  was  put  into  use  for  the  redemption  of  its  notes 
and  it  withstood  the  strain.  Country  bank  notes  were  being 
thrown  out  by  the  league,  and  this  and  other  troubles,  together 
with  the  general  popular  suspicion,  which  affected  all  banks, 
created  so  much  excitement,  that  on  March  12,  1842,  the 
Legislature  determined  to  compel  resumption,  by  passing  an 
Act  commanding  the  banks  to  resume  payment  of  their  notes, 
deposits,  and  other  liabilities  in  gold  and  silver  coin,  and 
enacting  that  refusal  to  do  so  ''shall  be  deemed  and  taken  to 
be  an  absolute  forfeiture  of  their  respective  charters."  No 
time  was  given  for  preparation,  and  the  consequences  were 
unfortunate.  The  banks  consulted  three  days  after  the  Act 
passed,  without  definite  result.  Next  day,  March  i6th,  a 
serious  run  was  made  on  the  Penn  Township  Bank,  and  it  was 
unable  to  meet  the  pressure  and  closed;  the  Mechanics'  Bank 
and  the  Manufacturers'  and  Mechanics'  Bank  had  the  same 
fate.  The  Philadelphia  Bank  resumed  payment  March  i6th, 
and  during  that  and  the  following  day,   eight  other  banks 


l,IN'COLN    GODFREY, 
First  Vice-President. 


Most  Serious  Banking  Depression  105 

resumed.  There  were  six  banks,  however,  that  suspended, 
the  Moyamensing  Bank  also  declining  to  resume. 

It  is  noteworthy  that  in  June,  1842,  during  this  period  of 
serious  depression,  the  Philadelphia  Bank  was  selected  as  a 
depository  of  the  public  money  of  the  United  States,  and  also 
as  the  Government  agent  for  the  payment  of  pensions  in  Penn- 
sylvania. These  appointments  were  a  mark  of  confidence  in 
the  darkest  period  of  the  Bank's  history;  and  were  largely  due 
to  its  resolute  efforts  to  maintain  specie  payments.  When 
its  statement  was  made  up  in  November,  1842,  the  Bank  held 
$671,800  in  specie  and  had  $439,089  notes  outstanding,  its 
deposits  being  $878,582.  It  then  held  of  Pennsylvania  State 
loans  $344,526,  but  they,  like  all  other  securities,  had  seriously 
depreciated  in  value. 

No  dividends  were  paid  in  1842,  but  the  Bank  had  been 
well  cared  for,  and  accumulated  a  contingent  fund  of  $273,892. 
The  board  made  a  long  report  to  the  stockholders  at  the 
annual  meeting  November  14th.  They  described  the  United 
States  Bank  debt  and  the  Pennsylvania  State  loan  as  being 
of  ^'such  uncertain  value  that  they  cannot  at  present  be  esti- 
mated with  any  degree  of  accuracy,  and  the  amount  to  be 
realized  on  them  will  depend  much  upon  the  time  which  may 
be  given  to  their  final  disposal."  The  board,  after  a  careful 
examination,  valued  the  Philadelphia  Bank  stock  at  not  less 
than  $48  per  share,  exclusive  of  the  amount  due  from  the 
United  States  Bank,  and  this  debt  was  equal  to  $63.40  addi- 
tional per  share.  An  arrangement  was  suggested  at  this  time 
to  extinguish  the  Pennsylvania  State  loan,  by  the  amount  of 
stock  in  the  Bank  held  by  the  State,  the  stockholders'  meeting 
authorizing  the  Board  "to  purchase  out  the  entire  interest 
of  the  State  in  the  institution,  if  it  can  be  done  on  terms  satis- 
factory to  the  Directors." 


io6  The  Philadelphia  Bank 

RECUPERATION 

The  Philadelphia  Bank  passed  its  lowest  point  in  the 
winter  of  1842-43.  The  following  spring  saw  better  times; 
money  became  more  plentiful,  stock  prices  advanced,  and  in 
June  loans  were  made  at  five  per  cent,  in  Philadelphia,  and 
4  per  cent,  in  New  York.  Philadelphia  Bank  shares  gradually 
appreciated,  and  sold  in  the  summer  at  62^  and  in  September 
at  70.  The  United  States  Bank  trustees  sold  some  of  its 
assets,  and  the  Philadelphia  Bank  joined  with  other  creditor 
banks  in  buying  them.  The  State  of  Pennsylvania  also  sold 
all  its  holdings  of  bank  and  other  stocks,  and  the  Philadelphia 
Bank  stock  was  largely  bought  for  the  Bank  at  the  auction 
sale  on  October  35th.  This  purchased  stock  was  canceled, 
thus  reducing  the  capital  of  the  Bank,  and  strengthening  its 
position.  Thereafter,  the  four  directors  who  had  represented 
the  State  w^ithdrew  from  the  board,  and  it  w^as  subsequently 
governed  entirely  by  the  directors  elected  by  the  stockholders. 
The  directors  had  an  annual  dinner  on  the  day  of  the  organiza- 
tion, and  thus  managed  to  get  a  little  enjoyment  in  connection 
with  their  arduous  duties. 

The  report  of  November,  1843,  announced  that  the  Gov- 
ernor of  Pennsylvania  would  not  permit  the  exchange  of  the 
State  loan  for  the  Bank  stock,  as  had  been  desired,  but  got 
the  Legislature  to  order  an  auction  sale.  Out  of  5333  shares 
of  Philadelphia  Bank  stock  held  by  the  State,  the  Bank  bought 
3919  shares  at  an  average  cost  of  $62.54  per  share,  and,  this 
being  canceled,  reduced  the  capital  to  11,503  shares,  or 
$1,150,300.  The  larger  part  of  the  Pennsylvania  State  loan 
held  by  the  Bank  was  sold  to  provide  funds  for  this  purchase. 
The  report  to  the  stockholders  was  much  more  cheerful,  and 
it  said:  "The  period  of  darkest  and  deepest  gloom  has  nearly 
passed  over,   and  although  the  institution  has  not  escaped 


Recuperation  107 

without  sustaining  heavy  losses,  in  common  with  several 
others,  yet  it  affords  the  Directors  much  pleasure  to  be  able 
to  inform  the  stockholders,  that  they  have  in  a  great  measure 
been  retrieved,  and  they  now  look  forward  to  the  period  as 
not  far  distant,  when  from  the  profits  of  the  Bank,  they  will 
again  be  in  receipt  of  the  usual  dividends  of  which  unfortunately 
they  have  been  so  long  deprived." 

The  assets  were  carefully  examined,  and  a  statement 
made  up  at  market  value.  The  United  States  Bank  debt 
was  reduced  in  the  schedule  to  sixty  per  cent,  of  its  face. 
While  no  Bank  dividends  had  been  declared  in  1843,  making 
five  that  had  been  passed,  yet  the  board  felt  confident  of 
being  able  to  make  a  dividend  in  May,  1844,  and  that  the 
stock  might  safely  be  considered  as  having  reached  its  par 
value  again.  In  the  statement  there  was  $427,781  charged 
off  the  United  States  Bank  debt,  and  other  items  were  also 
charged  out,  making  the  total  reduction  in  values  $505,357. 
The  chief  of  these  was  $53,466  loss  on  Pennsylvania  State 
loan.  The  net  results  showed  the  Bank  to  have  a  surplus 
of  $1,552  over  the  capital  of  $1,150,300.  The  deposits  were 
then  $1,601,247  and  the  circulating  notes  $671,878. 

In  May,  1844,  the  Philadelphia  Bank  was  able  to  resume 
making  dividends.  Having  placed  the  institution  back  upon 
a  paying  basis,  the  president,  who  had  been  working  over 
two  years  at  the  task,  wanted  to  resign,  and  wrote  a  very 
plaintive  letter,  referring  to  his  illness  and  his  physician's 
advice  that  he  must  seek  relief  at  some  of  the  medicinal  springs. 
This  was  on  June  loth,  but  the  Bank  would  not  listen  to 
such  a  suggestion,  and  gave  President  Smith  leave  of  absence 
for  such  time  as  he  might  deem  necessary,  and  elected  his 
close  companion,  the  other  venerable  director,  who  had  served 
since  18 14,  Samuel  W.  Jones,  president  pro  tempore.  The 
president  was  back  at  his  post,  much  refreshed,  in  the  autumn, 


io8  The  Philadelphia  Bank 

and  another  dividend  was  declared  in  November,  1844.  The 
report  said:  "The  last  year  has  been  one  of  great  prosperity 
to  the  Bank."  Business  had  greatly  improved,  and  though 
interest  rates  had  been  low,  the  Bank  had  been  able  to 
extend  discount  lines,  and  make  satisfactory  profits.  There 
had  been  two  dividends  declared  for  the  year,  each  of  four 
per  cent.,  and  the  surplus,  which  was  only  $1,552  in  November, 
1843,  had  now  increased  to  $79,430  over  the  capital,  which 
was  fixed  at  $1,150,000.  The  statement  showed  that  the 
Bank  held  $904,011  deposits  of  the  United  States  Treasurer, 
$84,283  of  the  Pennsylvania  State  Treasurer,  and  $1,681,033 
of  individuals.  The  United  States  Bank  trustees  also  were 
accumulating  funds  to  pay  their  debt,  and  had  $462,600  on 
deposit.  The  specie  held  was  $916,618  and  the  circulating 
notes  outstanding  were  $624,307.  The  Bank  had  $2,391,374 
loans  and  discounts,  and  $410,527  demand  loans,  this  being 
the  first  separate  entry  of  loans  on  call  in  its  statements.  It 
also  held  $160,400  United  States  loans  and  $20,762  loans  of 
Pennsylvania.     The  Bank  had  retrieved  its  position. 

In  1845  General  Jackson  died,  and  with  him  were  buried 
most  of  the  animosities  arising  out  of  the  great  conflict  with 
the  United  States  Bank  that  had  had  such  serious  financial 
consequences.  There  is  a  minute  on  June  23,  1845:  "It  was 
agreed  to  close  the  Bank  on  Thursday  next  in  consequence 
of  the  observance  of  the  obsequies  of  General  Jackson." 
Upon  that  day,  June  26th,  the  bell  was  tolled  in  Independence 
Hall,  the  building  was  draped  in  black,  and  a  great  procession 
moved  to  Washington  Square,  where  a  memorial  meeting  was 
held,  George  M.  Dallas,  Vice-President  of  the  United  States, 
making  the  oration. 

In  November,  1845,  the  United  States  Bank  trustees  had 
increased  their  deposits  in  the  Philadelphia  Bank  to  $567,800, 
and  in  the  summer  of  1846  they  made  a  partial  settlement. 


Recuperation  109 

paying  the  Bank  $617,663.69  on  account  of  the  debt.  Other 
sums  were  subsequently  paid  on  account,  and  out  of  these 
the  Bank  directors  made  extra  dividends  to  the  stockholders. 
The  Mexican  War,  which  had  been  declared  in  May,  was 
then  going  on,  and  greatly  stimulated  business,  though  the 
adoption  of  the  sub-treasury  system  in  full  force  and  the 
war  necessities  had  then  taken  about  all  the  Government 
deposits  out  of  bank.  At  the  close  of  1847  the  report  to 
the  stockholders  spoke  of  the  ample  export  trade  abroad 
producing  "large  imports  of  specie,  enabling  banks  to  maintain 
large  discount  lines."  The  Bank  made  dividends  of  17  per 
cent,  in  1847,  and  was  described  as  ''at  the  very  highest 
of  its  prosperity."  It  had  then  received  from  the  United 
States  Bank  trustees  $96,509  more  on  account  of  the  debt 
than  the  sixty  per  cent,  valuation  at  which  it  was  carried 
on  the  books,  and  the  bank  shares,  which  had  been  down 
almost  to  30,  had  advanced  in  November,  1847,  to  119. 

President  Samuel  F.  Smith  again  wanted  to  resign.  The 
Bank  was  all  right,  everybody  was  in  good  humor,  and  he 
sent  the  directors  a  very  long  and  urgent  letter  explaining 
why  he  must  retire  from  the  presidency,  and  pleading  most 
earnestly  to  be  relieved  by  the  election  of  a  successor.  This 
letter  was  received  by  the  board  November  4th,  and  the  directors 
referred  it  to  the  stockholders'  meeting  held  shortly  afterward. 
The  meeting  would  not  hear  of  such  a  thing,  but  requested 
him  not  to  resign  and  voted  him  "a  handsome  and  complete 
service  of  tea  silver"  as  ''a  tribute  of  regard  and  respect." 
The  minute  of  the  board  at  its  reorganization  meeting,  No- 
vember 1 8th,  records:  "Notwithstanding  the  above  letter, 
Samuel  F.  Smith,  Esq.,  was  unanimously  reelected  President." 

In  1848  another  change  came,  and  the  money  market 
tightened  in  January,  being  quoted  at  the  rate  of  i|  per 
cent,  per  month  for  good  paper.     Business  was  less  prosperous 


no  The  Philadelphia  Bank 

in  that  year,  and  the  Philadelphia  Bank  report  in  November 
speaks  of  depressed  trade  and  manufactures,  a  restricted 
money  market,  and  losses  arising  from  mercantile  failures. 
The  United  States  Bank  trustees  were  still  paying  in  money, 
and  twelve  per  cent,  dividends  were  declared  by  the  Bank 
for  1848,  and  fifteen  per  cent,  dividends  for  1849.  The 
regular  semi-annual  rate  had  been  increased  from  four  to  five 
per  cent,  and  the  additional  dividends  were  extra.  The  Bank 
had  also  accumulated  a  contingent  fund  of  $300,000,  which 
it  was  decided  should  be  maintained.  The  United  States 
Bank  had  down  to  this  time  returned  ySj  per  cent,  of  its 
debt. 

Upon  May  11,  1848,  it  is  recorded  that  "the  Board  pro- 
ceeded to  the  election  of  a  clerk  of  the  Bank,  when  B.  B. 
Comegys  was  duly  chosen  and  appointed  Assistant  to  the 
General  Ledger  bookkeeper."  Thus  began  the  service  of 
over  a  half-century,  of  that  estimable  gentleman  and  distin- 
guished banker,  whose  fame  and  that  of  the  Philadelphia 
Bank  are  indissolubly  connected.  It  is  noteworthy  that  the 
reports  of  following  years  are  in  Mr.  Comegys'  handwriting, 
and,  speaking  of  the  large  bank  business  done  in  the  year 
ending  with  November,  1850,  he  records  that  the  receiving 
teller  took  in  $600,000  daily  average,  and  the  paying  teller 
paid  as  much  out,  making  a  daily  cash  movement  of  $1,200,000, 
and  that  the  discounts  of  the  half-year  had  amounted  to 
$5,507,000.  He  also  recorded  that  the  $1,000,000  United 
States  Bank  debt  had  all  been  discharged  except  $155,003, 
exclusive  of  interest.  The  whole  of  this  principal  sum  was 
ultimately  paid.  Notwithstanding  the  omission  of  dividends 
for  two  and  one-half  years,  the  aggregate  bank  dividends  for 
the  decade  from  1841  to  1850  inclusive  were  79  per  cent. 


Internal  Improvements  m 

INTERNAL  IMPROVEMENTS 

In  the  early  history  of  the  Philadelphia  Bank  the  road- 
making  and  bridge-building  of  the  Commonwealth  were  en- 
couraged by  subscriptions  to  stocks  in  turnpike  and  bridge 
companies,  while  there  also  were  taken  by  the  Bank,  State 
loans  issued  for  the  construction  of  canals  and  the  exten- 
sive system  of  State  transportation  works.  Railroad-build- 
ing afterward  became  the  popular  form  of  improvement. 
The  early  and  unused  charter  given  John  Stevens  for  the 
Philadelphia  and  Columbia  Railroad  has  been  referred  to. 
The  construction  of  that  road  was  afterward  undertaken  by 
the  Commonwealth  as  a  public  work.  It  was  located  in 
1828  and  finished  in  1834.  Horses  hauled  the  cars  until 
1836,  when  locomotives  were  first  used.  These  locomotives 
were  owned  and  worked  by  the  State  under  the  Board  of 
Canal  Commissioners,  the  cars  being  the  property  of  indi- 
viduals, who  paid  tolls  for  having  them  pass  over  the  road. 
The  route  between  Philadelphia  and  Pittsburg  by  rail  and 
canal  was  completed  and  put  in  operation  about  1834.  The 
first  charters  for  a  railroad  over  the  Alleghenies  were  passed 
in  1837,  but  were  not  used  for  several  years. 

The  agitation  for  replacing  the  interior  canals  through 
the  Alleghenies  by  a  railroad  from  Harrisburg  to  Pittsburg 
first  t-ook  formal  shape  in  Philadelphia  at  a  large  meeting 
of  merchants  held  in  the  Musical  Fund  Hall,  December  9, 
1845,  2.t  which  Thomas  P.  Cope  presided.  An  address  to 
the  people  of  Pennsylvania,  and  a  petition  to  the  Legislature 
advocating  a  railroad  charter,  were  formulated.  The  Penn- 
sylvania Railroad  was  chartered  April  13,  1846,  as  a  result 
of  the  movement,  with  $10,000,000  capital.  Its  construction 
began  in  1847,  and  it  was  completed  to  Pittsburg  in  December, 
1852,  in  connection  with  the  State  works  over  the  mountains. 


112  The  Philadelphia  Bank 

A  second  meeting  was  held  in  Philadelphia,  April  27,  1846, 
to  advocate  subscriptions  to  the  stock,  and  committees  were 
appointed  who  labored  throughout  the  year  to  get  the  railroad 
shares  taken,  but  the  subscriptions  met  with  serious  opposi- 
tion. There  were,  however,  considerable  individual  subscrip- 
tions, and  the  city  of  Philadelphia  and  the  various  districts  in 
the  county  ultimately  took  $5,000,000.  Among  the  earnest 
workers  in  this  subscription  were  David  S.  Brown  and  Rich- 
ard D.  Wood.  On  December  31,  1846,  it  is  recorded  that  the 
Philadelphia  Bank  subscribed  for  two  hundred  shares  of  the 
"Central  Railroad,"  as  it  was  then  called,  though  this  was 
only  carried  by  one  majority,  the  vote  being  6  to  5,  among 
the  opponents  being  President  Smith  and  Mr.  Jones.  The 
railroad  company  afterward  became  a  depositor  in  the  Bank, 
which  took  two  hundred  and  six  more  shares,  making  four 
hundred  and  six,  which  were  carried  on  the  books  at  a  valua- 
tion of  45,  aggregating  $18,325.  A  letter  from  the  President 
of  the  Pennsylvania  Railroad  is  referred  to  on  March  30, 
184S,  in  which  he  desires  to  be  relieved  of  the  implied  obliga- 
tion of  keeping  a  certain  sum  on  deposit,  and  proposes  paying 
six  per  cent,  annual  interest  on  the  stock,  which  was  agreed  to. 

Other  investments  were  made  afterward  to  help  along 
similar  enterprises.  The  North  Pennsylvania  Railroad  was 
projected  from  Philadelphia  northward  to  the  Lehigh  at 
Bethlehem,  and  the  Bank  took  one  hundred  and  forty  shares, 
costing  $7,000,  and  later  $20,000  of  the  bonds,  which  were 
charged  at  $15,000.  The  Cleveland  and  Mahoning  Railroad 
was  constructed  as  part  of  a  line  extending  the  Pennsylvania 
Railroad  system  through  Ohio  toward  Lake  Erie,  and  the 
Bank  subscribed  to  $10,166  bonds  issued  for  that  enterprise, 
and  also  $3,000  to  bonds  of  the  Erie  Canal,  another  project 
for  connection  with  the  Lake. 

In  November,  1850,  the  assets  of  the  Philadelphia  Bank 


Continuing  Prosperity  113 

aggregated  very  nearly  $4,000,000,  and  it  held  $3,022,185 
loans  and  investments  and  $665,650  specie.  The  deposits 
were  $1,526,683,  and  the  amount  due  to  banks  $636,242, 
the  notes  outstanding  were  $427,798,  and  the  Bank  had 
$202,876  surplus. 


CONTINUING  PROSPERITY 

In  1 85 1,  upon  August  28th,  John  B.  Trevor,  the  cashier, 
resigned,  and  Benjamin  B.  Comegys  was  elected  cashier  of 
the  Philadelphia  Bank.  This  change  came  in  consequence 
of  Mr.  Trevor  having  made  advances  to  aid  in  the  development 
of  a  coal  property  in  Northumberland  County,  Pennsylvania, 
of  which  the  president  and  directors  disapproved.  The 
matter  attracted  much  public  attention  at  the  time,  but  through 
the  commendable  action  and  assistance  of  INIr.  Trevor,  it 
was  adjusted  with  but  small  loss  to  the  Bank. 

The  venerable  President  Smith,  who  was  in  infirm  health, 
at  last  accomplished  the  great  object  of  his  later  life  and 
resigned  from  the  office  of  president.  On  October  20,  1851, 
he  gave  notice  of  his  resignation  on  account  of  ill  health, 
and  on  December  21st  sent  the  formal  letter.  Mr.  Robins 
had  then  been  informally  selected  as  his  successor,  and  was 
elected  a  director  of  the  Bank  on  the  29th.  Mr.  Smith's 
resignation  was  tendered  to  take  effect  January  19,  1852. 
He  v/rote  a  letter,  which  evinced  deep  feeling,  announcing 
his  intention  of  ceasing  his  arduous  labors  as  president  of 
the  Bank.  On  January  19th,  when  he  retired,  the  board 
adopted  a  minute  recording  their  high  appreciation  of  his 
services  for  a  period  of  nearly  eleven  years  "marked  by  a 
series  of  unparalleled  convulsions  following  the  expiration  of 
the  United  States  Bank,  its  subsequent  bankruptcy  as  a  State 
institution,  the  financial  embarrassment  of  our  commonwealth 

8 


114  The  Philadelphia  Bank 

and  two  radical  changes  in  the  tariff;  during  which,  by  his 
unwearied  devotion  to  the  duties  of  his  trust,  his  energy,  skill 
and  talent,  he  not  only  succeeded  in  preserving  the  valuable 
interests  committed  to  his  charge,  but  in  advancing  the  pros- 
perity of  the  Bank  to  its  present  position  as  one  of  the  most 
successful  banking  institutions  in  the  Commonwealth." 

Upon  January  19,  1852,  Thomas  Robins  was  elected 
president  of  the  Philadelphia  Bank.  Mr.  Robins  was  born 
at  South  Point,  Maryland,  January  i,  1797,  and,  receiving  his 
education  there,  he  came  to  Philadelphia  in  181 6,  entering 
the  dry-goods  jobbing  house  of  James  Fassett  &  Co.,  at 
Second  and  Market  Streets,  where  he  served  for  ten  years. 
In  1826  he  became  the  head  of  the  dry-goods  firm  of  Robins, 
Tingley  &  Co.,  afterward  forming  the  firm  of  Robins,  Clag- 
horn  &  Hill,  auctioneers,  and  finally  Robins,  Powell  &  Co., 
dry-goods  jobbers,  with  a  branch  house  in  New  York.  During 
this  time  Mr.  Robins  was  a  director  of  the  Bank  of  North 
America,  and  he  was  also  one  of  the  assignees  of  the  United 
States  Bank.  When  he  was  chosen  president  of  the  Philadel- 
phia Bank  in  1852,  Thomas  Allibone  was  a  candidate  against 
him,  but  being  defeated,  turned  his  attention  elsewhere,  and 
during  that  year  was  elected  president  of  the  Pennsylvania 
Bank,  which  became  insolvent  within  five  years  and  passed 
out  of  existence.  Mr.  Robins  served  as  president  of  the 
Philadelphia  Bank  for  twenty-seven  years,  until  January  16, 
1879,  when  he  retired,  but  was  continued  as  director  until 
his  death,  April  13,  1882,  in  his  eighty-sixth  year.  He  was 
made  president  of  the  Philadelphia  Clearing  House  at  its 
organization  in  1858,  and  for  over  fifty  years  was  a  vestryman 
of  St.  Andrew's  Church.  He  was  also  a  director  for  forty- 
two  years  of  the  Pennsylvania  Fire  Insurance  Company. 

Upon  November  17,  1853,  Mr.  Samuel  W.  Jones  resigned 
as  director,   and  we  find   INIr.   Smith  making  an  eulogistic 


Continuing  Prosperity  115 

address  for  his  old  friend  and  submitting  a  minute,  which 
the  board  adopted,  regretting  the  retirement  of  the  veteran 
director  after  more  than  forty  years  of  service.  Mr.  Jones 
was  the  chairman  of  the  annual  stockholders'  meetings  for 
several  years  after\\^ard,  and  he  died  in  November,  1873,  at 
the  age  of  ninety-three. 

Upon  March  6,  1854,  the  death  of  John  Welsh  on  the 
4th  was  announced.  He  was  the  oldest  member  of  the  board, 
and  had  served  more  than  fifty  years.  The  minute  recorded 
described  him  as  ''the  Father  of  the  Bank,"  said  that  to  him 
more  than  any  other  man  it  was  indebted  for  its  corporate 
existence,  and  referred  to  his  indomitable  energy  and  perse- 
verance, which  triumphed  over  the  powerful,  bitter,  and  un- 
compromising opposition  the  Bank  had  in  its  earliest  history 
and  for  many  succeeding  years,  while  to  him,  perhaps,  more 
than  any  other  was  the  Bank  indebted  for  the  full  measure 
of  success  which  it  realized.  It  further  testified  to  his  constant 
watchfulness  and  care  for  its  interests  until  within  a  few 
weeks  of  his  death  at  the  ripe  age  of  eighty-four.  Upon  July 
7,  1854,  another  of  the  old  directors  of  the  Bank  died  suddenly, 
Mr.  William  Worrell,  who  was  described  as  one  of  the  most 
amiable  of  men. 

The  Philadelphia  Bank  was  still  receiving  money  on 
account  of  the  debt  due  by  the  United  States  Bank,  and 
early  in  1853  the  directors,  upon  the  initiative  of  ex-President 
Smith,  resolved  to  devote  a  portion  of  this  to  the  establishment 
of  the  "Clerks'  Pension  Fund."  This  was  formally  ratified 
by  the  stockholders  on  November  13,  1854,  and  in  the  state- 
ment of  that  year  the  contingent  fund  of  the  Bank  is  given 
as  $313,339,  and  the  Clerks'  Pension  Fund  also  appears  with 
a  credit  of  $30,000,  which  was  set  apart  from  that  fund  tem- 
porarily, to  be  reimbursed  from  an  expected  settlement  with 
the  United  States  Bank  trustees.     The  endowment,  as  adopted. 


ii6  The  Philadelphia  Bank 

provided  a  fund  "the  accruing  interest  on  which  to  be  applied 
from  time  to  time,  or  such  portion  of  it  as  the  board  may 
direct,  to  the  aid  and  assistance  of  such  of  those  in  the  employ 
of  the  Bank,  as  may  be  overtaken  by  sickness,  casualties  or 
such  other  vicissitudes,  while  in  the  employ  or  service  of  the 
Bank,  as  to  unfit  them  for  the  performance  of  their  accustomed 
duties,  and  who  may  find  themselves  in  circumstances  to 
require  such  aid  or  assistance."  This  beneficent  fund,  the 
first  of  its  kind  established  by  any  financial  institution,  has 
since  steadily  grown,  and  is  one  of  the  important  adjuncts 
of  the  service,  doing  great  good.  In  June,  1866,  the  board 
directed  that  the  surplus  income  of  this  fund  should  be  added 
to  the  principal  sum  of  the  endowment. 

The  autumn  of  1854  began  to  show,  after  several  years 
of  great  prosperity,  signs  of  monetary  stringency,  and  these 
were  evidenced  by  much  larger  requests  for  discounts  than 
the  Bank  could  take  care  of.  Thus  were  given  slight  pre- 
monitory symptoms  of  the  brewing  of  another  financial  storm, 
but  at  the  close  of  December  the  stringency  had  passed  away, 
and  it  was  noted  in  January,  1855,  that  specie  was  accumulating 
in  the  vaults  and  discounts  were  being  freely  made,  and  a 
similar  condition  existed  in  March,  1855.  The  troubles,  how- 
ever, were  only  delayed,  not  removed. 


V 
THE   FINANCIAL   CRISIS   OF    1857 

1856-1859 


THE   FINANCIAL  CRISIS  OF  1857 
1856-1859 

Events  Leading  to  the  Panic — The  Crisis  Comes — An  Early 
Resumptim — The  Present  Banking-house  Bought. 

EVENTS  LEADING  TO  THE  PANIC 

THE  Philadelphia  Bank  at  the  close  of  1855  was  in  ex- 
cellent condition.  It  had  $440,550  notes  outstand- 
ing and  held  $329,205  specie.  The  loans  were  about 
$2,964,000,  the  deposits  $2,036,000,  the  money  in  bank  $960,- 
000,  and  the  surplus  or  contingent  fund  $377,194.  The  Legis- 
lature, on  April  14,  1856,  passed  an  Act  further  extending  the 
charter  for  seventeen  years,  for  which  the  State  was  paid  a 
bonus  of  one  per  cent,  on  the  capital  stock  (subsequently  in- 
creased to  $1,800,000).  This  bonus  was  $18,000,  and  it  was  a 
favorite  method  in  those  days  of  getting  money  into  the  State 
treasury.  The  stockholders  on  May  29,  1856,  held  a  meeting 
and  formally  accepted  the  extension  of  the  charter,  Samuel  W. 
Jones  being  chairman,  and  Charles  Henry  Fisher,  secretary, 
those  gentlemen  continuing  to  be  the  regular  officers  of  the 
stockholders'  meetings  for  many  years.  Paying  the  bonus 
took  some  money  out  of  the  Bank,  and  drew  upon  the  con- 
tingent fund,  so  that  at  the  end  of  1856  it  was  down  to 
$338,493,  but  the  Bank,  nevertheless,  was  able  to  pay  twelve 
per  cent,  dividends  for  the  year,  and  the  stockholders  felt  so 
strong  that  at  the  annual  meeting  in  November  they  author- 

119 


I20  The  Philadelphia  Bank 

ized  the  directors  to  reissue  the  stock  previously  canceled,  and 
reinstate  the  capital,  then  $1,150,000,  to  the  former  amount — 
$1,800,000.  This  was  done,  but  the  Bank  again  became  the 
owner  of  a  large  amount  of  its  own  stock,  $155,399  being  thus 
invested. 

The  preliminaries  of  the  great  panic  of  1857  were  indicated 
during  almost  two  years  previously.  The  discovery  of  gold 
in  California  in  1849,  and  the  large  production  during  subse- 
quent years,  made  a  fever  of  speculation  all  over  the  world. 
The  Crimean  War  of  1854-56  added  stimulation,  through  the 
artificial  demand  for  special  supplies.  Finance  companies 
were  started  in  France  and  Germany  creating  vast  credits, 
and  railroad  building  was  pushed  both  there  and  in  the  United 
States,  where  liberal  land  grants  were  made  on  which  lines 
were  extended  west  and  south,  ahead  of  the  movement  of 
population.  Bank  loans  were  expanded,  large  amounts  of 
paper  money  were  issued,  and  the  unusual  demand  for  loans 
produced  scarcity  and  stringency  in  all  the  money  markets. 
In  the  records  of  the  Philadelphia  Bank  are  found  various 
loans  in  1854  and  1855  to  the  city  of  Philadelphia  to  pay 
bonded  debt  interest  and  bills,  in  amounts  varying  from 
$25,000  to  $60,000.  In  December,  1855,  the  banks  of  the 
city  had  to  join  in  a  large  advance  to  enable  the  treasurer 
of  Philadelphia  to  pay  January  interest.  On  November  i, 
1855,  quite  a  large  sum  had  to  be  discounted  in  the  Phila- 
delphia Bank  to  help  other  banks,  and  the  Pennsylvania  Bank 
was  reported  very  short  of  specie. 

As  1856  progressed,  matters  showed  no  improvement.  On 
November  24th,  the  money  rate  was  quoted  at  one  per  cent. 
per  month,  and  it  was  stated  that  ''commercial  affairs,  without 
any  apparent  approach  to  a  crisis,  have  an  uncomfortable 
appearance;  money  in  demand,  because  there  does  not  seem 
to  be  enough  to  be  had  to  meet  engagements,  except  at  high 


The  Crisis  Comes  121 

rates."  This  was  typical  of  what  was  going  on  all  over  the 
country,  and  it  got  worse  after  1857  began.  Bank  reserves 
everywhere  were  falling,  liabilities  increasing,  and  merchants 
found  constantly  greater  difficulty  in  making  collections. 
The  New  York  banks  on  August  22,  1857,  had  $120,000,000 
of  loans,  $9,000,000  notes  out,  $89,000,000  deposits,  and  held 
only  $10,000,000  specie;  but  their  condition  was  far  better 
than  that  of  the  banks  elsewhere  in  the  United  States,  there 
being  an  enormous  amount  of  irresponsible  and  "wildcat" 
bank  currency  afloat,  without  much  evidence  of  any  specie 
reserve  to  take  care  of  it,  these  notes  having  been  issued 
under  the  very  loose  banking  systems  prevailing  in  the  West  and 
South. 


THE  CRISIS  COMES 

On  August  24,  1857,  the  Ohio  Life  and  Trust  Company, 
in  New  York  city,  failed,  and  this  began  the  trouble.  Early 
in  September,  in  Philadelphia,  there  were  very  uncomfortable 
business  indications,  with  money  very  scarce,  the  best  paper 
being  at  one  and  one-half  to  two  per  cent,  per  month.  On  the 
1 8th  the  loss  of  the  steamer  "Central  America"  was  an- 
nounced, with  many  lives,  and  a  large  amount  of  California 
gold ;  and  there  was  general  alarm  and  an  increasing  demand 
for  money,  while  the  next  day  several  of  the  largest  business 
houses  of  Philadelphia,  unable  to  get  accommodation,  failed. 

Upon  September  21st  the  Philadelphia  Bank  directors 
held  a  long  session,  discussing  chiefly  the  question  whether 
the  Pennsylvania  Bank  should  be  sustained.  It  resulted  in 
a  decision  to  give  help,  by  taking  that  bank's  bills  on  London, 
secured  by  bills  receivable,  which  the  Pennsylvania  Bank 
gave.  Upon  the  23d  the  Philadelphia  Bank  directors  were 
considering  the  question  of  continuing  to  receive  the  Penn- 


122  The  Philadelphia  Bank 

sylvania  Bank  notes,  there  being  indications  of  that  bank 
going  into  liquidation.  Next  day,  several  bank  presidents 
met  and  had  a  long  session  on  the  question  without  decision. 
During  these  few  days  the  Philadelphia  Bank  loaned  the 
Pennsylvania  Bank  $225,000,  but  it  was  without  avail  in 
holding  up  that  tottering  institution. 

The  fateful  25th  of  September  came,  and  the  storm  broke 
upon  the  city.  The  Pennsylvania  Bank  suspended  early  in 
the  day,  and  within  an  hour  the  Girard  and  Commercial 
Banks  declared  a  suspension  of  specie  payments.  There  was 
great  excitement,  and  some  of  the  banks  summoned  police 
protection.  At  the  Philadelphia  Bank  on  that  day  people 
began  drawing  out  gold  in  small  quantities,  increasing  as  the 
day  advanced,  and  by  three  o'clock  the  Bank  had  paid  out 
$200,000  specie.  During  the  day  the  various  banks  of  the 
city  paid  out  about  $1,500,000  in  coin.  The  directors  met  in 
the  afternoon  and  agreed,  with  the  other  banks,  to  suspend 
specie  payments.  Pennsylvania  Bank  shares  had  declined  to 
91  before  it  closed,  but  they  were  not  saleable  aftenvard, 
and  Girard  Bank  shares  went  down  to  8,  and  after  the  sus- 
pension there  were  practically  no  dealings  in  any  of  the  city  bank 
stocks.  Pennsylvania  Railroad  shares  declined  to  36.  The 
notes  of  the  banks  quickly  sank  to  six  and  seven  per  cent, 
discount. 

The  next  day,  September  26th,  the  anxiety  of  the  debtor 
community  was  partly  relieved  by  the  suspension,  and  though 
there  was  much  perplexity  among  the  people  for  currency,  a 
feeling  of  more  satisfaction  was  evident.  Governor  James 
Pollock,  of  Pennsylvania,  came  to  the  city  on  that  day,  and 
the  bank  officers  convened,  and  requested  him  to  summon 
the  Legislature  in  special  session,  to  give  the  banks  relief 
from  the  penalty  of  forfeiture  of  their  charters  in  case  they 
suspended  for  a  longer  period  than  thirty  days,  and  also  to 


The  Crisis  Comes  123 

aid  the  public,  who  seemed  to  be  universally  in  debt.  The 
Legislature  was  summoned  October  6th,  and  on  the  8th  the 
business  men  held  a  meeting  in  Independence  Square  asking 
relief.  During  September  there  had  been,  throughout  the 
country,  forty  bank  failures.  Scores  of  other  banks  were  in  sore 
straits,  while  over  one  hundred  leading  business  houses  had 
been  compelled  to  suspend.  Prices  fell  in  all  directions; 
goods  were  almost  unsaleable;  cotton  declined  from  16  cents 
to  9  cents  per  pound,  and  an  enormous  number  of  working 
people  were  thrown  out  of  employment. 

The  public  and  the  press  generally  blamed  the  panic  upon 
too  much  railroad  expansion,  and  soon  the  railroad  corpora- 
tions began  to  default  in  their  interest  payments.  On  October 
nth  the  Illinois  Central  Railroad  system  in  the  West  made 
an  assignment,  being  quickly  followed  by  the  New  York  and 
Erie  Railroad.  About  the  same  time  the  Delaware,  Lacka- 
wanna, and  Western  Railroad,  which  was  constructing  its 
line  to  Scranton,  suspended.  The  Philadelphia  "Public 
Ledger"  on  October  14,  1857,  said  of  the  Lackawanna  road: 
"It  is  one  of  the  wildest  works  of  its  kind  ever  constructed 
in  this  country — as  impracticable  as  unnecessary.  It  is  just 
such  works  as  this  that  has  brought  about  the  present  bank- 
ruptcy and  ruin  that  pervades  the  country.  A  railroad  where 
this  is  laid,  is  not  wanted,  and  will  not  be  required  for  any 
supply  of  fuel  for  half  a  century  to  come." 

The  New  York  and  New  England  banks  had  been  en- 
deavoring to  maintain  specie  payments,  but  found  it  very 
diihcult.  Gold  advanced  to  seven  per  cent,  premium  in  New 
York,  and  this  started  a  run,  so  that  on  October  12th  to  13th 
the  New  York  banks  paid  out  $6,000,000  specie,  and  on  the 
13th  they  suspended,  being  followed  the  next  day  by  the 
Boston  and  New  England  banks,  so  that  in  the  middle  of 
October   the   suspension   of   specie  payments  was  universal 


124  The  Philadelphia  Bank 

throughout  the  country.  The  Pennsylvania  Legislature  was 
in  session  for  about  a  week,  and  passed  an  Act  relieving 
debtors,  removing  the  penalties  on  the  banks,  and  requiring 
them  to  resume  specie  payments  by  the  second  Monday  of 
April,  1858,  and  for  this  boon  the  banks  were  ordered  to 
pay  into  the  State  treasury  by  January  ist  a  bonus  of  J  of 
one  per  cent,  on  their  respective  capitals.  Upon  October 
31st  the  stockholders  of  the  Philadelphia  Bank  met  and 
accepted  the  provisions  of  the  Act. 

Throughout  October  the  demand  for  discounts  at  bank 
was  large  and  the  supply  of  cash  available  was  small.  On 
the  19th  the  merchants  held  a  meeting  to  bring  pressure  upon 
the  banks  to  get  them  to  increase  their  discount  lines.  On 
the  27th  there  was  general  gloom  in  commercial  circles;  and 
on  the  31st  the  various  bank  presidents  met  and  received  a 
report  from  a  committee,  that  the  affairs  of  the  Pennsylvania 
Bank  were  in  great  confusion  and  disorder,  showing  a  large 
deficiency  altogether  unaccounted  for,  whereupon  they  passed 
a  resolution  ''that  the  banks  here  represented,  apprehending 
and  believing  that  the  said  Bank  of  Pennsylvania  is  in  an 
unsafe  condition,  unanimously  request  Thomas  Robins,  Esq., 
President  of  the  Philadelphia  Bank,  to  certify  this  belief  to 
the  Governor,  on  our  general  behalf."  This  was  the  end  of 
the  Pennsylvania  Bank. 

The  statement  of  the  Philadelphia  Bank  on  November 
9,  1857,  after  going  through  the  worst  of  the  panic,  showed 
as  favorably  as  could  have  been  expected.  The  bank  dividend 
in  May  had  been  five  per  cent.,  but  in  November  was  cut 
to  three  per  cent.,  making  eight  per  cent,  for  the  year.  The 
capital  had  been  increased  to  $1,800,000  and  the  contingent 
fund  to  $385,799.  The  Pennsylvania  Bank  owed  it  $225,000, 
and  there  were  other  suspended  debts  of  $86,499,  w^hile  there 
had  been  borrowed  $188,091  temporary  loan.     The  notes  in 


AI,FRED    C.    HARRISON. 


An  Early  Resumption  125 

circulation  were  $141,537,  and  the  specie  held  $177,523.  The 
discounts  for  the  year  aggregated  $16,661,000.  The  report 
presented  described  in  words  of  lamentation  the  serious  ordeal 
through  which  the  Bank  had  passed,  and  the  numerous 
failures,  saying  that  it  cannot  escape  from  losses  which  must 
grow  out  of  such  a  widespread  ruin,  adding:  ''It  is  difficult, 
while  the  storm  is  still  raging,  to  form  an  accurate  estimate 
of  what  these  losses  will  be.  A  large  proportion  of  the  failures 
to  meet  engagements  have  been  by  houses  or  individuals 
of  ample  means,  but  who,  from  the  destruction  of  confidence, 
and  the  indisposition  on  the  part  of  capital  to  advance  money 
on  any  securities,  were  unable  to  make  their  means  available 
to  pay  their  debts.  In  all  such  cases,  a  little  forbearance  and 
aid  will  enable  them  rapidly  to  liquidate  the  claims  against 
them,  and  thus  a  large  proportion  of  suspended  paper  will 
soon  be  settled."  The  directors  could  make  no  estimate  of 
apprehended  losses,  but  "trust  they  will  not  impair  the  present 
large  contingent  fund." 


AN  EARLY  RESUMPTION 

In  a  short  time  the  whole  aspect  changed.  On  the  day 
the  above  statement  and  report  were  presented  the  money 
market  was  easier,  and  early  in  December  the  Bank  was  loaning 
more  freely.  Pig  iron  had  gone  down  to  $20  per  ton,  being 
a  lower  price  than  for  years.  On  December  7th  the  Bank 
was  said  to  be  doing  a  moderate  business,  while  upon  the 
12th  the  banks  of  New  York  resumed  specie  payments.  This 
caused  the  question  of  resumption  in  Philadelphia  to  be 
actively  discussed,  and  at  the  opening  of  1858  it  became 
the  prominent  financial  and  commercial  question  of  the  day. 
The  accumulation  of  specie  and  generally  improved  outlook, 
in  fact,  enabled  the  banks  in  Philadelphia  to  resume  much 


126  The  Philadelphia  Bank 

sooner  than  had  been  anticipated,  and  on  February  3,  1858, 
they  were  paying  specie,  and  on  the  next  day  the  Clearing 
House  Association  met  and  passed  a  formal  resolution  that 
''the  Banks  of  Philadelphia  resume  specie  payments  forth- 
with." It  is  recorded  on  February  4th,  in  the  minutes  of  the 
Philadelphia  Bank  board,  that  ''In  conformity  with  the  fore- 
going resolution,  this  Bank  is  now  paying  specie  upon  all 
its  liabilities,  and  has  fully  resumed  specie  payments  after  a 
suspension  of  one  hundred  and  thirty  days,  caused  by  panic, 
distrust,  and  severe  mercantile  pressure  existing  during  the 
last  six  months." 

Commercial  business,  however,  became  very  dull.  The 
Bank  had  difficulty  in  finding  enough  good  paper  to  discount, 
and  throughout  the  spring  of  1858  the  offerings  were  much 
smaller  than  the  income,  and  rates  at  times  were  below  five 
per  cent.  These  conditions  made  a  great  falling-off  in  the 
revenues  of  the  United  States  Government,  and  Congress  had 
to  authorize  the  temporary  expedient  of  issuing  treasury  notes 
bearing  interest,  to  replenish  the  treasury.  To  employ  its  idle 
capital  the  Bank  bought  $300,000  of  these  notes  in  March, 
at  four  to  five  and  one-half  per  cent,  interest,  another  $300,000 
in  May,  at  four  and  three-quarters  to  five  and  one-quarter 
per  cent.,  and  $100,000  in  June,  at  five  per  cent.  Conditions 
had  thus  completely  changed  from  the  stringency  of  1857, 
This  state  of  affairs  continued  throughout  the  year,  and  in 
fact  the  dullness  and  depression  did  not  end  for  a  long  time. 

The  events  of  this  period  led  to  the  establishment  of  the 
Philadelphia  Clearing  House  in  its  present  form.  The  New 
York  banks  had  established  their  Clearing  House  in  August, 
1853,  making  weekly  publication  of  their  reports.  This  led 
to  a  similar  suggestion  in  Philadelphia,  but  President  Allibone, 
of  the  Pennsylvania  Bank,  always  opposed  it,  while  President 
Robins  advocated  it.     Allibone  carried  his  point,  but  a  tem- 


An  Early  Resumption  127 

porary  system  was  established,  by  a  meeting  of  a  Board  of 
Cashiers  to  make  daily  exchanges,  though  without  daily  settle- 
ments, and  this  continued  several  years.  As  soon  as  the 
Pennsylvania  Bank  was  eliminated,  the  Philadelphia  Clearing 
House  was  established  with  Thomas  Robins  as  its  president, 
and  the  first  clearings  were  made  March  22,  1858. 

When  the  stockholders  met  at  the  close  of  1858,  the  report 
of  the  board,  after  referring  to  the  panic  and  resumption, 
described  the  year  1858  as  *'a  year  of  liquidation  and  settle- 
ment, throughout  the  business  community,  during  which 
period  the  business  of  the  Bank  had  gone  on  regularly  and 
prosperously."  The  loss  upon  suspended  paper  was  much 
less  than  had  been  feared,  and  in  fact  was  below  $20,000, 
or  a  fraction  over  one  per  cent,  on  the  capital  of  the  Bank. 
In  this  estimate,  the  debt  due  by  the  Pennsylvania  Bank  was 
not  included,  the  remainder  of  this  debt  as  yet  unliquidated 
being  $58,142,  and  '^secured  by  assets  which  the  Board  believe 
will  pay  its  face."  The  stagnation  of  business,  by  accumu- 
lating idle  capital  seeking  em.ployment,  reduced  the  interest 
rates  and  banking  profits,  but  after  paying  two  dividends  of 
five  per  cent,  each  during  the  year,  they  were  still  able  to 
increase  the  contingent  fund  by  $8,258.  The  decline  in  busi- 
ness, however,  was  well  shown  by  the  falling-off  in  the  total 
discounts  to  $12,124,000.  The  Bank  was  very  strong.  It  held 
$843,570  specie  with  but  $352,710  notes  out,  and  $2,036,527 
deposits.  It  also  then  still  held  $450,000  of  the  United  States 
treasury  notes  that  had  been  purchased.  The  suspended 
debt  was  reduced  to  $36,419,  and  the  contingent  fund  was 
$352,710. 


128  The  Philadelphia  Bank 

THE  PRESENT  BANKING  HOUSE  BOUGHT 

For  some  years  the  Philadelphia  Bank  had  found  itself 
cramped  for  space,  and  the  occupancy  of  the  second  story 
of  its  building  as  a  banking  room  was  unhandy  and  not  satis- 
factory. The  Western  Bank  had  succeeded  the  United  States 
Bank  as  its  neighbor.  There  are  repeated  references  to 
securing  another  site,  and  as  early  as  1856  Mr.  Wood's  diary 
mentions  the  discussion  of  a  project  to  buy  ground  for  a  new 
banking  house,  to  enable  the  business  to  be  done  down-stairs. 
When  the  Pennsylvania  Bank  failed  it  was  about  finishing 
the  fine  Quincy  granite  building  on  the  north  side  of  Chestnut 
Street  opposite  the  Custom  House,  into  which,  however,  it 
never  moved.  When  the  construction  of  this  building  began, 
the  Philadelphia  Bank  directors  were  full  of  the  idea  of  securing 
the  property  adjoining  it  on  the  eastward,  then  occupied  by 
the  United  States  Hotel,  but  it  was  held  at  too  high  a  valuation. 
Subsequently,  this  property  was  acquired  for  the  Philadelphia 
Trust  and  Safe  Deposit  Company.  The  Pennsylvania  Bank 
Assignees  had  their  unfinished  building  as  an  asset,  and  it 
was  offered  at  public  sale  by  M.  Thomas  &  Sons,  auctioneers, 
on  the  evening  of  March  i,  1859,  at  the  Philadelphia  Mer- 
chants' Exchange,  now  the  Stock  Exchange,  and  it  was  bought 
for  the  Philadelphia  Bank. 

The  circumstances  attending  this  purchase  are  interesting. 
The  house  had  cost  about  $320,000,  and  in  the  then  condition 
of  affairs  there  was  doubt  whether  a  satisfactory  purchaser 
could  be  found,  as  it  was  only  suitable  for  a  bank.  The  Phila- 
delphia Bank  people  did  not  decide  to  bid  for  it  until  the 
day  of  the  sale.  Their  committee  met  in  the  morning,  and 
resolved  to  report  in  favor  of  buying  the  Pennsylvania  Bank 
building,  and  they  had  the  board  summoned  for  four  o'clock 
in  the  afternoon,  when  the  purchase  was  agreed  upon,  and  after 


The  Present  Banking  House  Bought       129 

considerable  discussion  it  was  decided  to  authorize  bidding 
to  $186,000.  Mr.  Robins  bought  the  building  for  $163,100, 
much  to  the  satisfaction  of  the  purchasers.  Thus  the  Phila- 
delphia Bank  acquired  the  banking  house  it  now  occupies, 
at  a  price  which  was  about  one-half  the  original  cost.  In 
this  connection  it  was  at  the  time  stated  by  Mr.  Francis  M. 
Drexel,  the  founder  of  the  banking  house  of  Drexel  &  Co., 
that  he  fully  intended  to  buy  the  building  at  the  sale,  but 
he  went  home,  and,  falling  asleep  after  tea,  did  not  awaken 
until  too  late  to  go  down  to  the  Exchange.  The  next  morning 
he  called  upon  Mr.  Robins  and  told  him  the  circumstance, 
adding  that,  had  he  been  there,  Mr.  Robins  would  not  have 
got  the  building  without  paying  a  much  higher  price. 

The  law  in  those  days  prohibited  any  bank  investing  more 
than  $50,000  in  its  banking  house,  and  the  old  bank  at  Fourth 
and  Chestnut  Streets  was  carried  on  the  books  at  that  figure. 
Mr.  Robins  consequently  had  to  become  the  owner  of  the 
building,  and  on  March  3d  he  wTOte  a  letter  to  the  directors 
announcing  his  purchase,  and  that  he  was  prepared  to  negotiate 
with  the  Philadelphia  Bank  for  a  lease  of  the  premises,  and 
would  also  make  a  title  to  the  Bank,  "when  such  legislation 
has  been  obtained  as  will  enable  the  bank  legally  to  hold  it, 
and  when  they  shall  have  paid  to  me  the  amount  of  the  pur- 
chase money,  $163,100,  and  the  expenses  w^hich  may  be  in- 
curred thereon. "  The  board  thereupon  appointed  a  committee 
to  negotiate  with  the  president  for  occupancy,  with  power  to 
complete  the  building,  and  apply  to  the  Legislature  for  such 
modification  of  the  law  as  would  enable  the  Bank  to  hold 
title  to  the  building.  This  the  Legislature  obligingly  did,  and 
the  banking  house  was  at  once  prepared  for  occupancy.  The 
finishing  and  furnishing  cost  about  $13,500,  making  the  entire 
cost  of  the  property  about  8176,500.  The  banking  room  was 
at  the  northern  end,  reached  by  a  corridor  from   Chestnut 


130  The  Philadelphia  Bank 

Street,  and  the  front  of  the  house  was  for  many  years  let 
for  offices.  The  old  bank  at  Fourth  and  Chestnut  Streets 
was  sold  at  auction  May  31st,  and  bought  by  Richard  D. 
Wood  for  $76,500.  The  surplus  over  $50,000  was  passed  to 
the  credit  of  the  new  building,  and  in  i860,  when  everything 
was  completed,  its  whole  cost  was  entered  on  the  books  at 
$153,480.99.  The  Philadelphia  Bank  removed  from  its  old 
building  on  the  afternoon  of  June  28,  1859,  and  began  business 
in  the  new  building  on  the  morning  of  Wednesday,  June 
29th.  This  was  the  fourth  banking  house  it  had  occupied, 
and  is  the  present  Philadelphia  Bank  building. 

It  is  noteworthy  that  during  1859,  while  business  was  dull 
with  money  rates  easy  and  discounting  often  at  five  per  cent., 
the  Bank  was  able  to  make  ten  per  cent,  dividends  for  the 
year.  The  directors  marked  this  period  by  determining  to 
place  the  portrait  of  the  venerable  ex-President  Samuel  F. 
Smith  as  a  vignette  on  the  notes.  The  success  of  the  year 
and  the  purchase  of  the  new  Bank  gave  so  much  satisfaction 
that  the  president's  salary  was  increased  to  $5,000.  Quintin 
Campbell,  who  had  been  in  the  service  of  the  Bank  since 
its  organization  in  1803,  as  teller,  cashier,  and  director,  over 
fifty-six  years,  resigned  as  director  in  November,  1859. 
At  the  close  of  1859  the  Bank  held  $658,831  specie  and  had 
$377,230  notes  outstanding,  the  contingent  fund  being  $324,155. 

During  this  year  also  resigned  the  old  runner,  William 
Long,  who  had  done  his  work  faithfully  during  the  half-cen- 
tury, and  only  asked  permission  to  resign  on  account  of  the 
infirmities  of  age,  he  being  eighty-one  years  old.  The  board 
adopted  a  most  appropriate  minute  to  this  faithful  ser\^ant, 
written  by  the  facile  pen  of  Mr.  Smith,  whose  literary  pro- 
ductions are  scattered  through  the  Bank  records  for  so  many 
years.  In  the  course  of  the  eulogy,  Mr.  Smith  wrote  these 
words  of  proper  tribute  to  his  fidelity  and  integrity:  ''During 


The  Present  Banking  House  Bought       131 

the  time  he  has  been  in  the  service  of  the  Bank,  he  has  col- 
lected and  accounted  for  untold  millions  of  dollars,  without 
having  been  the  cause  of  the  loss  of  a  single  dollar,  either 
by  negligence,  carelessness,  or  in  any  other  way,  and  so  far 
as  it  is  known  he  has  done  this  without  giving  offence  to 
any  one  with  whom  he  has  transacted  the  business  of  the 
Bank  by  his  manner  of  doing  it.  The  duties  compelled  him 
to  traverse  the  entire  city  almost  daily,  through  summer's 
heat  and  winter's  storms,  and  in  many  instances  during  the 
prevalence  of  desolating  pestilence,  but,  faithful  in  the  dis- 
charge of  his  duty,  he  never  faltered  nor  failed  to  execute 
it,  without  reference  to  the  labor  which  it  cost,  or  the  personal 
risk  it  involved."  An  ample  pension  was  provided  for  Mr. 
Long.  The  dividends  of  the  Philadelphia  Bank  during  the 
decade  1851-1860  amounted  to  iii  per  cent.,  and  from  the 
foundation  of  the  institution  in  1803,  to  the  close  of  i860, 
there  had  been  paid  in  dividends  402  per  cent. 


VI 
THE   SECOND  WAR   PERIOD 

1860-1865 


VI 

THE  SECOND  WAR  PERIOD 

1860-1865 

The  BiHef  Suspension  in  i860 — The  War  Opens — The 
Long  Specie  Suspension  Begins  —  Progress  of  the 
War — Eiid  of  the  War. 

THE  BRIEF  SUSPENSION  IN  i860 

AFRESH  financial  derangement  was  produced  by  the 
approach  of  the  War  of  the  RebelHon  in  i860.  The 
presidential  election  on  November  6th  resulted  in 
the  choice  of  Abraham  Lincoln,  and  throughout  the  South 
immediate  preparations  began  for  secession.  The  annual 
statement  of  the  Philadelphia  Bank,  compiled  on  the  day 
preceding  the  presidential  election,  showed  the  condition  of 
its  finances  before  this  derangement  came.  The  specie  in 
bank  was  $505,957,  the  notes  issued  $407,745,  the  deposits 
$2,736,550,  the  loans  $4,036,258,  and  the  contingent  fund 
$324,155,  with  the  capital  continuing  at  $1,800,000.  Within 
a  week  after  the  result  of  the  presidential  election  became 
known,  the  South  was  aflame,  alarming  reports  pervaded 
the  country,  the  stock  market  declined,  and  money  rates 
advanced.  The  most  gloomy  predictions  of  disunion  were 
made,  and  great  commercial  distrust  ensued,  so  that  by 
November  17th  call  loans  had  reached  eight  per  cent,  and 
commercial  paper  was  quoted  at  one  to  one  and  one-half 
per  cent,  monthly  for  the  best,  and  two  to  two  and  one-half 

135 


136  The  Philadelphia  Bank 

per  cent,  for  other  names.  Then  the  public  took  alarm,  the 
banks  began  losing  specie  and  had  to  contract  their  loans. 

Upon  November  19th  the  Clearing  House  statement  of 
the  banks  in  Philadelphia  showed  both  loans  and  deposits 
to  be  declining,  and  that,  in  the  aggregate,  they  held  $4,116,000 
specie,  of  which  the  Philadelphia  Bank  had  $470,000,  its  note 
issues  within  two  weeks  having  declined  to  $270,000,  the 
deposits  to  $2,128,000,  and  the  loans  to  $3,483,000.  These 
evidences  of  contraction  created  serious  public  anxiety,  and, 
the  tendency  everywhere  being  to  draw  out  deposits,  the 
managers  of  the  savings  funds  in  Philadelphia  joined  in  an 
agreement  to  insist  on  full  two  weeks'  notice  from  the  with- 
drawing depositors,  having  previously  been  rather  lax  in  this 
regard.  This  action  added  to  the  excitement.  In  New  York 
sixteen  banks  united  in  an  arrangement  to  buy  a  large  amount 
of  sterling  exchange,  hoping  thus  to  strengthen  themselves  by 
getting  gold  from  abroad. 

The  trouble  became  most  acute  in  the  South,  and  on 
November  21st  the  Richmond  and  Petersburg  banks  in  Vir- 
ginia suspended  specie  payments.  This  news  being  tele- 
graphed to  Baltimore,  the  bank  presidents  in  that  city  imme- 
diately met,  and  decided  to  suspend  specie  payments  the  next 
day,  November  2 2d.  The  Philadelphia  money  market  became 
very  stringent,  and  was  described  as  even  harder  than  during 
the  crisis  of  1857;  commercial  paper  was  almost  unsaleable; 
the  banks  did  little  discounting,  and  rates  were  quoted  at 
two  and  one-half  to  three  per  cent,  per  month. 

When  November  2 2d  opened,  the  action  of  the  Baltimore 
and  other  Southern  banks  was  announced  in  the  morning 
newspapers,  and  a  run  began  on  the  banks  in  Philadelphia. 
The  presidents  immediately  met,  and  ordered  a  suspension 
of  specie  payments  at  noon.  The  Philadelphia  Bank  board 
was  hastily  convened,  and  the  minute  records  the  action  of 


LEVI   I,.    RUE, 
Second  \"ice-President  axd  Cashier. 


The  Brief  Suspension  in   i860  137 

the  joint  meeting  and  that  an  immediate  suspension  of  specie 
payments  was  ordered.  When  they  stopped  specie  payments 
at  noon,  the  city  banks  had  lost  about  $500,000  in  gold  and 
silver  since  they  opened  in  the  morning,  and  they  still  held 
about  $3,500,000  specie  in  the  vaults.  This  suspension  was 
not  total,  however,  as  small  sums  for  change  were  paid  out 
and  specie  drafts  honored  where  it  was  absolutely  necessary. 
The  next  day  the  New  York  banks  for  the  first  time  adopted 
the  loan  certificate  system,  which  was  afterward  repeatedly 
resorted  to  in  times  of  excessive  stringency  to  protect  the 
reserves.  This  was  a  virtual  suspension,  and  the  suspension 
soon  became  general  all  over  the  country,  gold  going  to  a 
premium  of  two  per  cent. 

The  next  aggregate  bank  statement  in  Philadelphia  showed 
on  November  26th  that  their  specie  had  decreased  $771,320 
for  the  week,  to  $3,354,542,  and  their  deposits  were  reduced 
$1,133,442.  The  Philadelphia  Bank  held  $360,000  specie  and 
had  note  issues  of  $274,000  and  deposits  of  $2,209,000.  The 
city  of  Philadelphia  was  in  great  straits,  being  unable  to  pay 
its  warrants,  as  the  treasury  was  empty.  A  temporary  loan 
of  $500,000  had  been  negotiated,  but  was  soon  used  up,  and 
the  warrants  had  gone  to  ten  per  cent,  discount.  Subse- 
quently, the  outstanding  warrants  were  funded  into  city  six 
per  cent.  loan.  The  year  i860  closed  with  greatly  depressed 
business  and  a  bad  outlook.  South  Carolina  seceded  from 
the  Union  in  December,  and  the  national  treasury  was  almost 
bankrupt,  the  entire  financial  system  being  disordered,  and 
money  being  borrowed  at  twelve  per  cent,  to  pay  the  interest 
on  the  public  debt  due  January  ist,  while  merchants  were 
paying  fifteen  per  cent,  for  loans  at  the  end  of  the  year. 


138  The  Philadelphia  Bank 

THE  WAR  OPENS 

There  ensued  three  months  of  great  political  and  business 
uncertainty  in  Philadelphia,  but  monetary  matters  got  rather 
calmer,  and  the  gold  premium  had  disappeared  in  the  spring 
of  1 86 1.  All  kinds  of  public  meetings  were  held  looking  to 
conciliation  and  averting  a  rupture,  but  in  the  mean  time  the 
Southern  States  were  following  the  example  of  South  Carolina 
and  successively  seceding,  and  the  Southern  Confederacy  was 
set  up  in  February  with  Jefferson  Davis  as  president.  While 
the  South  was  preparing  for  war,  the  North  was  drifting 
aimlessly  along.  In  March  the  banks  had  considerably 
strengthened  their  position  in  Philadelphia,  the  aggregate 
statement  of  March  5th  showing  that  they  held  over  $5,000,000 
specie  with  $2,811,000  notes  in  circulation  and  $14,868,000 
deposits,  the  specie  having  steadily  increased  since  the  sus- 
pension of  the  previous  November.  The  Philadelphia  Bank 
held  $749,000  specie,  with  $391,000  circulating  notes  and 
$2,277,000  deposits.  Money  rates  were  quoted  in  March  at 
six  to  seven  per  cent,  on  call,  and  eight  to  ten  per  cent,  for 
the  best  paper,  other  descriptions  being  higher.  Temporizing 
was  still  going  on. 

Upon  April  12  th  firing  began  upon  Fort  Sumter  at  Charles- 
ton, and  two  days  later  Major  Anderson  surrendered.  The 
greatest  excitement  followed,  and  in  a  twinkling  the  whole 
Northern  sentiment  changed,  the  spirit  of  the  nation  was 
aroused,  and  everywhere  troops  were  being  mustered  and 
sent  to  the  front.  General  business  was  checked,  however, 
and  this  made  money  plentiful,  and  the  loaning  rate  fell  to 
six  per  cent.  The  Pennsylvania  Legislature  at  once  passed 
an  act  appropriating  $500,000  to  organize,  equip,  and  arm 
the  State  troops,  the  money  to  be  raised  by  loan,  and  on 
April  1 8th  the  Philadelphia  Bank  directors  authorized  Presi- 


The  War  Opens  139 

dent  Robins  to  notify  the  Governor  "that  this  bank  is  ready 
to  respond  to  the  appKcation  for  a  loan  to  the  Commonweahh, 
to  the  extent  of  the  abiHty  of  the  bank."  On  the  22d  the 
Philadelphia  Bank  responded  to  the  request  of  the  Committee 
of  Public  Safety  organized  for  the  defence  of  Philadelphia, 
and  contributed  one-half  of  one  per  cent,  on  the  capital  to 
a  fund  of  $250,000  raised  for  the  purpose,  either  as  "3.  donation 
or  a  loan."  It  also  "placed  at  the  disposal  of  the  officers 
$1,000,  to  be  used  for  the  defence  of  the  Institution." 

The  "Home  Guard"  was  immediately  formed  for  city  de- 
fence, and  on  April  25th,  we  find  the  Philadelphia  Bank 
board  approving  the  following  resolution:  "That  the  officers 
and  clerks  of  the  several  Banks  and  Insurance  Companies  of 
the  City  of  Philadelphia,  located  on  Chestnut  Street,  west  of 
Third  Street  and  east  of  Fifth  Street,  form  themselves  into  a 
Home  Guard  for  the  protection  of  the  said  Banks  and  Insurance 
Companies,  and  offer  their  services  to  Col.  A.  J.  Pleasanton, 
as  a  portion  of  the  Home  Guard  of  Philadelphia  and  request 
that  they  be  detailed  for  such  special  service."  The  great 
event  of  the  succeeding  Fourth  of  July  was  the  parade  of 
this  Home  Guard,  which  made  a  most  creditable  appearance. 
It  was  recognized,  however,  that  the  war  had  become  most 
portentous  in  aspect,  for  on  July  5th,  as  the  term  of  service 
of  the  three  months'  regiments  was  soon  expiring.  President 
Lincoln  recommended  raising  an  army  of  400,000  men,  and 
estimated  that  it  would  cost  $400,000,000  to  carry  on  the 
war. 

The  Philadelphia  Bank  on  May  i,  1861,  joined  with  the 
other  banks  in  the  first  adoption  of  the  system  of  Clearing 
House  loan  certificates  in  Philadelphia.  The  certificates  were 
to  bear  sLx  per  cent,  interest,  and  were  based  on  deposits 
of  the  Bank's  assets  with  the  Loan  Committee,  up  to  seventy- 
five  per  cent,  of  their  face.     They  were  to  be  used  in  settlement 


I40  The  Philadelphia  Bank 

of  balances  at  the  Clearing  House  for  the  succeeding  ninety 
days.  The  whole  issue  was  not  to  exceed  $2,500,000.  The 
specie  in  all  the  banks  was  also  to  be  considered,  and  treated 
as  a  common  fund  for  mutual  aid  and  protection,  the  Loan 
Committee  being  given  power  to  equalize  the  same  by  assess- 
ment or  otherwise  at  their  discretion.  After  June  ist,  each 
bank  was  required  to  have  on  hand  in  specie  an  amount 
equal  to  one-fourth  of  its  net  liabilities.  This  arrangement 
was  made  by  nineteen  banks,  and  formed  the  basis  of  their 
mutual  relations  thereafter,  the  Loan  Committee  appointed 
to  carry  it  into  effect  being  Charles  H.  Rogers,  Tradesmen's 
Bank;  Edwin  M.  Lewis,  Farmers'  and  Mechanics'  Bank; 
Joseph  Patterson,  Western  Bank;  B.  B.  Comegys,  Philadel- 
phia Bank;  and  John  B.  Austin,  Southwark  Bank.  Herein 
is  found  the  germ  of  the  twenty-five  per  cent,  bank  reserves  in 
large  cities  enacted  by  the  National  Banking  Acts. 

The  subsequent  history  of  the  Philadelphia  Bank  during 
1 86 1  deals  largely  with  loans  to  the  governments  of  the  nation 
and  State.  On  June  loth  it  subscribed  $100,000  State  loan, 
and  on  the  13th  $30,000  additional.  On  July  25th  it  made  a 
temporary  loan  at  sixty  days  of  $150,000  to  the  United  States. 
The  treasury  was  getting  into  great  straits  for  money,  and 
on  August  15th  an  arrangement  was  made  by  a  convention 
of  the  banks  of  New  York,  Boston,  and  Philadelphia,  to  assist 
the  Government  by  taking  three  years'  treasury  notes  bearing 
7.30  per  cent,  interest.  This  interest  rate  was  adopted  because 
it  was  one  cent  per  day  interest  on  $50.  The  associated 
banks  were  to  take  $50,000,000  of  these  treasury  notes  at 
once,  a  second  $50,000,000  October  15th,  and  a  third  $50,- 
000,000  December  15th.  The  portion  allotted  to  Philadelphia 
was  ten  per  cent,  of  the  whole  amount,  and  the  Philadelphia 
Bank  in  proportion  to  its  capital  took  its  share  ($750,000)  of 
each  issue  of  these  treasury  notes. 


The  Long  Specie  Suspension  Begins       141 

The  times  were  unpropitious  for  all  banks,  however,  as 
business  was  dull,  and  at  the  end  of  October,  1861,  Phila- 
delphia Bank  stock  was  quoted  down  to  85.  On  November 
4th  the  stockholders  of  the  Bank  met  and  received  the  annual 
report.  The  Bank  held  $1,273,823  specie  and  had  $292,350 
notes  in  circulation.  It  had  loaned  the  State  of  Pennsylvania 
$180,000,  and  the  United  States  $1,097,625,  besides  holding 
$188,450  treasury  notes.  The  unfortunate  commercial  condi- 
tions were  shown  by  suspended  debts  of  $148,830,  and  the 
contingent  fund  was  $344,268.  The  report  stated  that  business 
had  been  much  interrupted  by  the  political  troubles,  "stopping 
all  communications  with  the  Southern  States,  and  locking  up, 
if  not  totally  extinguishing,  a  large  amount  of  funds  belonging 
to  the  customers  of  the  Bank,  and  seriously  embarrassing 
many  houses,  heretofore  of  undoubted  standing  in  our  business 
community."  The  negotiation  of  loans  with  the  Government 
by  the  treasury  note  issue  was  explained,  it  being  announced 
that  ''the  banks,  gathering  strength  from  the  public  sentiment, 
deemed  it  expedient  and  proper  to  assume  the  grave  responsi- 
bility of  this  negotiation,  considering  it  of  vital  importance  to 
every  material  interest,  as  well  of  the  banks  as  of  the  country, 
that  the  Government  should  be  sustained  in  its  endeavors 
to  maintain  the  integrity  of  the  Constitution  and  the  laws." 
Thus  the  Philadelphia  Bank,  in  1861,  had  loaned  the  greater 
part  of  its  capital  to  the  Federal  and  State  governments; 
while  the  May  and  November  dividends  were  each  reduced  to 
three  per  cent. 

THE  LONG  SPECIE  SUSPENSION  BEGINS 

As  December,  1861,  approached  matters  were  looking 
better.  There  were  large  produce  exports  and  specie  had 
been  coming  into  the  country,  so  that  early  in  the  month 


142  The  Philadelphia  Bank 

money  was  abundant  at  easy  rates  and  there  was  some  cheer- 
fulness. But  just  at  this  time  an  American  man-of-war  forcibly 
removed  Mason  and  Slidell,  the  Confederate  diplomatic 
agents,  from  the  British  steamer  "Trent,"  and  this  instantly 
changed  the  whole  outlook.  -Upon  December  15th  the  New 
York  banks  held  $39,435,000  specie  and  the  banks  in  Phila- 
delphia $7,354,000,  of  which  the  Philadelphia  Bank  had 
$1,181,000,  and  money  rates  were  quoted  at  six  to  seven 
per  cent.  Upon  that  day,  however,  the  mail  steamer  from 
Liverpool  arrived  at  New  York  with  the  portentous  intelligence 
that  England  had  demanded  from  the  United  States  the  sur- 
render of  Mason  and  Slidell,  and  an  apology.  The  greatest 
excitement  ensued,  as  it  was  feared  that  England  would  join 
with  the  South  in  the  war.  Gold  exports  to  Europe  began, 
stocks  declined,  and  serious  apprehension  was  felt.  This 
alarm  continued  for  nearly  tw^o  weeks,  when  it  w^as  announced 
on  December  28th  that  the  Government  had  surrendered 
Mason  and  Slidell,  and  thus  prevented  a  rupture.  But  the 
financial  damage  had  been  done.  The  drain  on  the  New 
York  banks  had  reduced  their  specie  to  $23,000,000,  while 
the  Philadelphia  banks  were  down  to  $5,193,000,  of  which 
the  Philadelphia  bank  had  $875,000.  Besides  the  drain  of 
specie  to  Europe  and  the  interior,  there  were  also  large  pay- 
ments made  to  the  Government  for  treasury  notes.  This  pro- 
cess of  depletion  going  on  in  all  the  banks  necessitated  a 
radical  contraction  of  commercial  loans. 

Upon  Saturday,  December  28th,  gold  was  in  such  demand 
that  it  was  quoted  at  a  premium  of  one-half  per  cent.,  paid 
mostly  for  small  lots,  evidently  for  hoarding,  while  the  treasury 
7.30  notes  w^ere  at  one  per  cent,  discount.  The  outlook  was 
bad,  and  another  run  was  feared,  so  that  in  the  evening  the 
presidents  of  the  New  York  banks  met,  and  decided  to  suspend 
specie  payments  on  Monday  morning,  December  30,   1861. 


The  Long  Specie  Suspension  Begins       143 

The  suspension  was  made  on  the  same  day  by  the  Boston 
and  Philadelphia  banks,  the  entire  country  following.  Thus 
began  the  long  suspension  of  specie  payments,  which  continued 
for  seventeen  years,  until  1879.  The  necessities  of  the  war 
and  the  lack  of  currency  soon  paved  the  way  for  the  Govern- 
ment issues  of  legal  tender  notes,  and  the  National  Banking 
Laws  of  1863  and  1864,  which  based  the  banking  S3'stem 
of  the  United  States  upon  the  Government  loans  and  legal 
tenders.  On  January  2,  1862,  gold  was  quoted  at  one  per 
cent,  premium,  and  sterling  exchange  at  iio^,  making  gold 
exporting  profitable. 

The  currency  question  became  very  embarrassing,  as  Jan- 
uary progressed,  and  was  the  prominent  topic,  while  gold 
advanced  to  104I.  The  treasury  was  selling  large  amounts 
of  treasury  notes,  which  were  usually  at  a  small  discount. 
Matters  rather  improved  in  the  spring,  however,  and  the  gold 
premium  declined;  while  money  became  more  plentiful  as 
the  Government  was  making  large  disbursements  on  account 
of  the  war,  and  the  prices  of  goods  were  advancing.  This 
gradually  produced  easier  conditions,  and  by  June  money  had 
become  so  abundant  that  the  loaning  rates  were  down  to 
four  per  cent.  Then  came  the  defeats  of  McClellan  and  Pope 
in  the  summer,  and  the  Confederate  advance  to  Antietam, 
Maryland,  in  September,  with  another  alarm  along  the  border. 
On  September  14,  1862,  the  directors  of  the  Philadelphia  Bank 
passed  a  resolution  giving  leave  of  absence  to  such  of  the 
clerks  as  could  be  spared,  "to  join  the  several  military  organi- 
zations, which,  at  the  call  of  the  Governor  of  the  Common- 
wealth, are  about  to  prepare  for  the  defence  of  the  State, 
and  that  during  such  absence,  their  salaries  be  continued  to 
•them."  The  battle  of  Antietam  was  fought,  and  the  Con- 
federates recrossed  the  Potomac.  The  gold  premium  again 
advanced,   and  speculation  in  stocks  and  in  goods  became 


144  The  Philadelphia  Bank 

greater,  the  continued  enormous  Government  disbursements 
supplying  plenty  of  money. 

The  Philadelphia  Bank  during  1862  did  not  have  a  very 
favorable  year,  the  May  dividend  being  but  three  per  cent., 
while  the  November  dividend  was  four  per  cent.  The  slack- 
ness of  trade  during  the  greater  part  of  the  time  reduced  the 
amount  of  bills  discounted  to  about  $8,000,000,  while  to 
employ  its  funds  the  Bank  bought  corporation  loans,  mostly 
railway  bonds,  amounting  to  over  $387,000.  By  the  November 
statement  it  had  $83,000  suspended  debt ;  it  held  $225,625  Penn- 
sylvania State  loan,  $46,000  Philadelphia  city  loan,  $230,000 
treasury  7.30  notes,  and  $250,000  United  States  certificates 
of  indebtedness.  Legal  tender  notes  appear  for  the  first  time 
in  this  statement,  the  Bank  holding  $998,005,  and  it  held 
$856,155  gold  and  silver,  while  the  contingent  fund  was  $458,- 
207  and  the  total  assets  $7,656,502.  The  issue  of  bank  notes 
was  $372,000  and  the  deposits  $4,931,063.  The  report  said 
that  "the  unsettled  state  of  the  affairs  of  the  nation,  the  em- 
barrassment of  commerce,  the  depreciation  in  the  value  of 
the  circulating  medium  below  the  specie  standard,  and  the 
fluctuations  in  credits,  render  it  futile  to  form  or  express  any 
opinion  about  the  future  business  and  financial  affairs  of  the 
bank  or  of  the  country.  The  Board  can  only  promise  that 
they  will  give  diligent  care  in  the  management  of  the  Insti- 
tution, and  endeavor  to  prevent  losses  and  keep  the  capital 
whole." 

There  then  began  a  period  of  enormous  inflation,  due  to 
the  immense  government  war  disbursements,  and  the  higher 
gold  premium,  as  the  national  struggle  became  more  costly 
and  determined.  A  cotton  famine  came  in  1863.  In  January 
cotton  advanced  to  84  cents  per  pound,  and  in  February 
gold  was  at  171;  early  in  March  cotton  was  at  95  cents,  but 
the  military  successes  in  the  West  had  reduced  the  gold  pre- 


ALEXANDER   J.    CASSATT. 


The  Long  Specie  Suspension  Begins       145 

mium  later  in  the  month  to  153  and  cotton  to  55  cents.  For 
the  half-year  ending  with  April,  1863,  the  banking  profits 
were  the  largest  ever  earned,  though  the  prevalent  discount 
rate  was  usually  only  five  per  cent.  In  July  Gettysburg  had 
been  fought,  and  Vicksburg  surrendered,  cotton  kept  at  55 
cents,  but  gold  was  down  to  126.  This  year  the  Federal 
income  tax  was  first  collected.  In  the  autumn  all  goods  had 
a  further  rise,  cotton  going  in  October  to  90  and  92  cents, 
and  No.  2  pig  iron  in  December  reaching  $42  per  ton. 

The  Bank  loaned  the  Government  $165,000  gold  in  May, 
1863,  to  aid  in  paying  public  debt  interest,  and  advanced  the 
State  of  Pennsylvania  $144,000,  requested  by  the  Legislature  for 
the  troops  called  out  for  State  defence  in  the  Gettysburg  cam- 
paign, and  to  pay  interest  on  the  State  debt,  besides  subscribing 
$5,000  to  the  city  fund  for  defence.  In  September,  1863,  the 
Bank  also  arranged  to  loan  the  government  $750,000,  to  be 
repaid  in  five  per  cent,  legal  tender  treasury  notes,  and  after- 
ward, in  December,  it  advanced  the  city  $50,000  for  the 
bounty  fund.  The  Bank  was  doing  so  much  better  that  it 
paid  two  dividends  of  five  per  cent,  each  in  1863,  and  in  the 
November  statement  reported  the  contingent  fund  increased 
to  $576,534,  while  the  suspended  debt  was  only  $7,787.  The 
Bank  then  held  $1,967,683  United  States  loans  and  certificates, 
$187,700  loans  of  the  State  of  Pennsylvania,  and  $46,000  of 
the  city  of  Philadelphia.  It  also  held  $849,409  legal  tenders 
and  $545,450  gold  and  silver  as  reserves.  While  the  Bank 
had  been  prosperous,  yet  the  taxation  was  very  heavy,  $7,743 
having  been  paid  to  the  State  and  $27,875  to  the  United 
States  during  the  year.  The  bank  note  issues  were  down  to 
$100,060  and  it  had  $4,838,130  deposits,  besides  $327,500 
deposit  of  the  United  States  Treasurer. 


146  The  Philadelphia  Bank 

PROGRESS  OF  THE  WAR 

The  Government  expenditures  with  the  progress  of  the 
war  became  constantly  larger.  At  the  opening  of  the  cam- 
paign of  1864,  General  Grant  personally  led  the  army  against 
Richmond,  moving  forward  in  April.  The  City  Treasurer 
appealed  for  help  in  February,  when  the  draft  was  enforced 
and  bounties  for  enlistments  were  being  provided,  and  the 
Bank  loaned  the  city  $150,000  on  the  security  of  bounty 
warrants,  to  provide  funds.  Pig  iron  then  was  at  $44  per 
ton,  and  when  General  Grant  started  on  the  march  through 
the  "Wilderness"  of  Virginia,  gold  was  at  175  and  cotton  85 
cents  per  pound.  In  May  cotton  advanced  over  $1  per  pound, 
and  on  June  i6th  it  was  at  1.40,  while  on  June  24th  a  sale 
of  one  case  of  42-inch  cotton  goods  was  made  by  Richard  D. 
Wood  to  James,  Kent,  Santee  &  Co.,  of  Philadelphia,  at  60 
cents  per  yard,  being  stated  as  "just  the  cost  of  making  cotton 
at  $1.50." 

The  Government  was  pouring  out  greenbacks,  interest- 
bearing  notes,  certificates,  and  bonds,  to  provide  for  the  vast 
war  disbursements,  thus  making  an  extraordinary  inflation,  so 
that  a  period  of  wild  speculation  had  set  in,  affecting  all  the 
markets,  and  on  June  20,  1864,  when  Grant  was  fighting  his 
way  through  the  "Wilderness,"  gold  advanced  to  250,  and  on 
the  30th  to  251.  The  city  had  to  issue  another  loan  to  fund 
its  military  indebtedness,  and  the  Philadelphia  Bank  took 
$500,000  of  it,  and  in  September  it  took  $400,000  more  United 
States  loan.  The  conditions  then  had  somewhat  improved, 
for  the  National  Banking  Acts  were  going  into  effective 
operation,  making  a  large  demand  for  Government  bonds  from 
the  banks;  General  Grant  was  achieving  success  on  the  ap- 
proach to  Richmond  from  the  south  side  of  James  River;  and 
General  Sherman  was  conducting  a  brilliant  campaign  in  the 


Progress  of  the  War  147 

West.  Both  gold  and  cotton  declined,  the  latter  selling  down 
to  105  at  a  large  Government  sale  of  captured  cotton  upon 
September  26th.  The  Philadelphia  Bank  decided  to  become 
a  national  bank  in  October,  1864,  and  as  the  security  for 
the  circulation  was  thencefon\'ard  to  be  United  States  bonds, 
it  sold  $300,000  gold  which  had  been  held  as  a  reserve,  the 
quotation  then  being  2i6|. 

President  Lincoln  was  re-elected  for  his  second  term  on 
Novembers,  1864.  This  was  universally  interpreted  as  mean- 
ing a  continuance  of  the  war  to  the  end,  with  large  additional 
issues  of  paper  money,  so  that  on  the  9th  gold  fluctuated 
violently  upward,  ranging  during  the  day  from  245  to  259!, 
at  which  it  closed,  but  the  next  day  it  was  more  quiet  at 
252I  to  255.  It  is  interesting  to  note  that  the  quotations  in 
paper  money  on  that  day  were  for  United  States  bonds  sixes 
io6|  to  107I,  treasury  7.30  notes  107,  and  certificates  of 
indebtedness  95^,  while  the  ten-forty-five  per  cent,  loan  then 
first  issued  was  at  102^.  Cotton  was  quoted  at  $1.40  per 
pound. 

The  last  dividend  made  as  a  State  institution  by  the  Phila- 
delphia Bank  was  eight  per  cent,  in  May,  1864,  and  since 
its  organization  in  1803  it  had  down  to  that  time  divided  no 
less  than  433  per  cent.,  the  dividends  aggregating  $6,634,572. 
In  November,  1864,  the  first  dividend  was  made  as  a  national 
bank,  five  per  cent.  When  the  statement  was  made  up  for 
this  dividend,  the  Bank  had  a  contingent  fund  of  $696,979. 
It  held  $1,415,405  United  States  loans,  $37,000  State  loans, 
$500,000  city  loans,  $383,500  railroad  bonds,  $2,600,558 
ordinary  loans  and  discounts,  $263,055  gold  and  silver,  and 
$2,082,674  paper  money. 


148  The  Philadelphia  National  Bank 

END  OF  THE  WAR 

In  the  early  winter  of  1864-65  it  became  evident  that  the 
War  was  nearing  its  end.  Sherman's  march  to  the  sea 
cut  the  Confederacy  in  t\\^ain,  and  Grant's  movement  south 
of  Petersburg  and  Richmond  was  gradually  outflanking  Lee's 
army.  As  the  inevitable  result  came  nearer,  the  credit  of 
the  United  States  began  appreciating.  By  the  end  of  February, 
1865,  the  gold  premium  was  down  to  200,  and  a  vigorous 
demand  for  United  States  bonds  set  in  abroad,  so  that  in 
March  the  five-twenties  were  quoted  in  London  at  52  to  54. 
These  foreign  purchases  of  bonds  caused  gold  to  be  liberally 
shipped  to  the  United  States,  and  the  premium  further  de- 
clined, so  that  on  March  22,  1865,  it  was  at  156,  and  the 
next  day  at  151.  The  decline  greatly  unsettled  the  stock 
market,  and  all  inflated  values  of  goods  were  also  declining, 
causing  at  times  almost  a  panic.  The  United  States  bonds 
and  greenbacks  were  appreciating  as  the  gold  premium  fell 
away,  and  thus  additional  value  was  being  added  to  the  larger 
portion  of  the  Bank  assets. 

The  minute-book  of  the  directors  of  the  Philadelphia 
National  Bank  at  this  time  shows  the  engrossing  interest 
taken  in  public  affairs.  Upon  April  3d  it  is  recorded  that 
"just  before  the  board  met  at  11  o'clock  to-day,  intelligence 
was  received  in  the  city  of  the  capture  of  Petersburg,  Virginia, 
and  while  the  Directors  were  engaged  in  discounting,  a  despatch 
was  sent  into  the  room  announcing  the  occupation  of  Rich- 
mond by  our  forces  under  General  Weitzel,  this  morning  at 
quarter  past  eight  o'clock."  Gold  fell  to  144  upon  this  news, 
but  it  afterward  rose  again  to  153,  and  the  stock  market  was 
moved  up  and  down  largely  with  the  gold  premium. 

The  final  collapse  came  in  the  surrender  of  Lee's  army  at 
Appomattox  on  April  9,  1865.    On  the  loth  the  gold  premium 


End  of  the  War  149 

again  declined  to  144  upon  the  announcement  of  this  event. 
The  minute  recorded  on  that  day  reads:  "The  President,  before 
taking  his  seat,  made  some  appropriate  remarks,  congratulating 
the  Board  on  the  glorious  news,  and  the  probable  speedy- 
return  of  peace  and  prosperity."  There  was  the  greatest  re- 
joicing everywhere  at  this  result. 

But  the  joy  soon  turned  to  mourning.  Upon  the  evening 
of  April  14th  President  Lincoln  was  assassinated,  and  the 
whole  world  was  shocked  by  the  atrocious  deed,  which  the 
"Public  Ledger"  next  day  described  as  "The  Crime  without 
a  Name."  The  Stock  Exchange  was  closed  and  did  not  open 
until  the  17th,  when  gold  excitedly  opened  at  155,  though 
the  premium  gradually  declined  during  the  day  to  148  at  the 
close.  President  Robins,  when  the  Bank  board  convened  on 
the  17th,  appropriately  addressed  the  directors,  and  his  re- 
marks were  ordered  to  be  recorded  on  the  minutes.  He 
described  the  joy  of  the  previous  week,  and  the  sorrow  into 
which  the  country  was  now  plunged,  declaring  "these  events 
have  created  a  profound  sensation  in  the  public  mind,  and 
shrouded  in  grief  the  whole  nation,  and  the  board  will  feel 
it  due  to  the  solemn  occasion  to  recite  these  facts  upon  their 
minutes,  to  express  their  own  deep  feelings  of  sorrow  and 
heartfelt  sympathy  with  their  immediate  fellow-citizens  and 
the  nation  at  large,  in  the  common  calamity  which  has  befallen 
the  country. " 

The  occupation  of  Mobile  was  announced  on  April  17th, 
and  as  the  armed  opposition  to  the  Government  became  more 
and  more  feeble  the  gold  premium  steadily  sank,  until  in 
June  it  had  touched  137.  But  there  were  still  enormous  dis- 
bursements necessary  for  war  expenses,  with  further  issues 
of  Government  bonds  and  greenbacks,  so  that  it  was  more 
than  a  decade  before  the  gold  premium  entirely  disappeared, 
and  resumption  came,  January   i,   1879.    The  tremendous 


15©  The  Philadelphia  National  Bank 

financial  task  involved  in  crushing  the  Rebellion  was  shown 
in  the  startling  comparison  that  the  ordinary  expenses  of  the 
Government,  which  had  been  about  $60,000,000  in  i860, 
had  increased  in  1865  to  $1,217,000,000.  A  proclamation  by 
President  Johnson  on  April  2,  1866,  declared  officially  the 
end  of  the  Civil  War. 


VII 

THE   PHILADELPHIA   NATIONAL 

BANK 

1864-1879 


VII 

THE  PHILADELPHIA  NATIONAL  BANK 
1864-1879 

Its  First  National  Charter — Recuperation  and  Reconstruc- 
tion— The  Panic  of  iSy^ — Final  Resumptio7i  of  Specie 
Payments. 

ITS  FIRST  NATIONAL  CHARTER 

IN  June,  1863,  the  original  National  Banking  Act  parsed 
by  Congress  went  into  operation.  This  Act  had  in  con- 
templation more  the  creation  of  new  banks  than  placing 
under  the  national  control  the  older  institutions  already  in 
operation  by  State  charters,  but  it  was  soon  found  that  if 
the  latter  were  accomplished  it  would  secure  the  most  powerful 
financial  aid  for  the  Government  in  carrying  on  the  war, 
which  had  become  such  a  prodigious  task.  The  earliest  refer- 
ence made  to  changing  the  relations  of  the  Philadelphia  Bank 
is  upon  December  21,  1863,  when  the  board  had  some  dis- 
cussion about  taking  a  United  States  charter,  though  nothing 
was  then  done. 

Congress  passed  the  second  National  Banking  Act,  June 
3,  1864,  and  it  was  specially  designed  to  bring  into  the  national 
system  the  State  banks,  its  provisions  being  elastic  enough 
to  provide  for  the  varying  peculiarities  of  banking  methods 
in  different  parts  of  the  country.  This  Act  conferred  the 
greatest  boon  upon  the  public  in  providing  for  the  safety  and 
security  of  the  paper  currency,  for  it  made  full  provision 

153 


154  The  Philadelphia  National  Bank 

for  the  issue  of  national  bank  notes,  curing  the  many  defects 
of  the  old  State  bank  issues  which  had  given  such  endless 
trouble,  and  at  times  caused  such  heavy  losses  through  failure 
of  redemption.  These  State  bank  issues  were  taxed  out  of 
existence.  The  new  law  was  entitled,  ''An  act  to  provide  a 
national  currency,  secured  by  a  pledge  of  United  States  bonds, 
and  to  provide  for  the  circulation  and  redemption  thereof." 
This  new  law  was  generally  approved  by  bank  managers, 
and  as  the  banks  of  the  State  were  desirous  of  taking  advantage 
of  its  provisions,  the  Legislature  of  Pennsylvania,  on  August 
22,  1864,  passed  an  enabling  Act  permitting  them  to  become 
banking  associations  under  the  United  States  laws. 

The  subject  of  taking  out  a  national  charter  was  again 
discussed  in  the  Philadelphia  Bank  early  in  September,  1864, 
and  on  the  15th  the  board  unanimously  voted  to  make  the 
change,  and  began  the  necessary  procedure.  It  was  de- 
cided to  reduce  the  capital  stock  from  $1,800,000  to  $1,500,- 
000  as  a  national  bank  through  the  purchase  and  cancelation 
of  3000  shares,  including  those  which  the  Bank  then  owned. 
The  stockholders  were  convened  upon  October  20th,  and 
voted  to  surrender  the  charter  to  the  State  in  accordance 
with  the  provisions  of  the  Act  of  the  Legislature  and  to  become 
a  national  banking  association  under  the  Act  of  Congress 
of  June  3d.  Upon  the  resolution,  three  hundred  and  forty 
stockholders,  holding  14,636  shares,  voted  in  the  affirmative, 
and  one  stockholder,  holding  five  shares,  in  the  negative,  so 
that,  more  than  two-thirds  of  the  whole  capital  stock  approving, 
the  resolution  was  adopted.  Henry  Wharton  was  the  solicitor 
of  the  Bank  who  attended  to  the  necessary  legal  procedure, 
and  the  stockholders  ordered  that  a  portrait  of  the  president, 
Thomas  Robins,  be  procured  for  the  Bank. 

The  Articles  of  Association,  formulated  the  same  day, 
were  adopted  under  the  name  and  style  of  ''The  Philadelphia 


Its  First  National  Charter  155 

National  Bank";  Thomas  Robins  was  appointed  president, 
and  Benjamin  B.  Comegys  cashier,  and  $500,000  registered 
bonds  of  the  United  States  were  ordered  transferred  and  de- 
livered to  the  Treasurer  of  the  United  States  in  Washington, 
that  being  the  amount  then  required  by  the  law  to  be  deposited 
and  transferred  preliminary  to  the  commencement  of  business 
as  a  national  bank.  The  number  of  directors  was  thirteen. 
These  Articles  of  Association  were  signed  by  Thomas  Robins, 
Richard  D.  Wood,  Lewis  R.  Ashhurst,  Marshall  Hill,  Henry 
Preaut,  Benjamin  G.  Godfrey,  S.  W.  DeCoursey,  George 
Whitney,  J.  Gillingham  Fell,  and  James  L.  Claghom,  a 
majority  of  the  directors.  The  election  of  directors  was  fixed 
upon  the  second  Tuesday  in  January,  and  Mondays  and 
Thursdays  were  made  discount  days.  Mr.  Comegys  went  to 
Washington  with  the  bonds  and  other  necessary  documents, 
completing  the  arrangements  with  the  treasury,  and  on  October 
22,  1864,  Hugh  McCulloch,  Comptroller  of  the  Currency, 
issued  the  certificate  authorizing  "The  Philadelphia  National 
Bank"  to  commence  business,  being  No.  539  in  the  national 
roll  of  banks. 

The  actual  beginning  of  business  under  the  national  charter 
was  upon  the  morning  of  Tuesday,  October  25,  1864,  and 
President  Robins  so  reported  to  the  board  on  the  27th.  He 
also  then  reported  the  purchase  and  cancelation  of  the  three 
thousand  shares  of  stock,  reducing  the  capital  to  $1,500,000. 
It  is  interesting  to  note  in  this  connection  that  a  director 
made  an  arrangement  to  sell  the  Bank  171  of  these  shares, 
being  paid  at  par  in  gold,  the  latter  being  quoted  at  2i6|, 
and  he  subsequently  executed  an  agreement  with  the  Bank 
to  take  these  shares  back  at  par  in  gold,  at  any  time  down 
to  October  24,  1865,  if  tendered  to  him.  The  gold  premium 
had  greatly  declined  when  that  day  came,  and  the  option  was 
not  exercised.     All  the  plates  and  dies  of  the  State  bank  notes 


156  The  Philadelphia  National  Bank 

were  canceled  so  they  could  not  be  used,  and  then  Solicitor 
Wharton,  for  the  Bank,  surrendered  them,  under  the  State  law, 
to  the  Court  of  Quarter  Sessions  of  Philadelphia, 

The  following  staff  began  the  business  of  ''The  Phila- 
delphia National  Bank"  in  October,  1864:  Paying  teller, 
Isaac  P.  Mein;  receiving  teller,  John  Murphy;  general  book- 
keeper, Joseph  Roberts;  cashier's  clerk,  Joseph  P.  Mumford; 
discount  clerk,  Horace  Hill;  foreign  note  clerk,  Charles  E. 
Elmes;  bookkeepers  and  clerks,  James  Glentworth,  Samuel  A. 
McFarland,  Joseph  P.  Cramer,  Thomas  Waterman,  F.  A. 
Tierney,  E.  Kochersperger,  Samuel  Henry,  Jacob  V.  Weldon, 
Henry  Farnum,  John  S.  Mcllvaine,  E.  P.  Ireland,  H.  K. 
Fairgrieve,  W.  G.  Clarkson,  William  Sherwood;  runners, 
Joseph  Wilson,  Henry  C.  Cornog;  porters,  William  A.  Mad- 
dock,  Davis  Graver;  messenger,  John  MacGowan;  watchmen, 
Alexander  MacGowan,  John  DeBuist. 

Upon  October  27th  the  directors  counted  and  burned  all 
the  notes  of  the  Philadelphia  Bank  of  previous  issues  that 
were  in  the  Bank,  amounting  to  $449,155,  and  all  the  sheets 
of  printed  and  unsigned  notes.  Thus  having  completed  all 
the  formalities,  the  board  ordered  a  flagstaff  to  be  put  on 
the  building  and  the  United  States  flag  to  be  displayed,  and 
voted  $3,000  toward  "sustaining  the  Government  in  all  lawful 
and  proper  ways  in  the  coming  emergency."  One  of  the 
features  in  thus  passing  under  the  rule  of  the  United  States 
was  the  receipt  by  the  board  on  October  31st  of  a  request 
from  the  tellers  and  clerks  that  in  view  of  the  change  in  the 
relations  of  the  bank,  permission  be  given  them  to  take  the 
oath  of  allegiance  to  the  United  States;  whereupon,  it  was 
"Resolved:  that  the  board  highly  approve  of  the  patriotic 
sentiments,  expressed  by  sundry  employees  of  this  Bank,  in 
their  communication  of  this  date,"  and  the  president  was 
required  to  make  this  action  known  to  them. 


Its  First  National  Charter-  157 

The  board  ordered  $450,000  national  bank  notes  to  be  ob- 
tained and  issued,  and  subsequently  increased  the  amount 
to  $540,000.  It  sent  $100,000  more  bonds  to  Washington  to 
be  deposited  as  security,  so  that  the  Bank  could  be  a  designated 
depository  of  public  moneys,  and  $100,000  additional  security 
for  circulating  notes,  so  that  it  had  $700,000  bonds  in  Wash- 
ington. The  successful  transfer  of  allegiance  to  the  Federal 
Government  put  the  board  in  generous  mood.  The  president's 
salary  was  increased  to  $6,000,  the  cashier's  to  $5,000,  and 
$10,000  gratuity  was  distributed  among  the  clerks.  Liberal 
donations  were  given  the  Volunteer  Refreshment  Saloons,  the 
hospitals,  the  Soldiers'  and  Sailors'  Fair,  and  other  organiza- 
tions for  soldiers'  relief;  and  $2,500  was  presented  to  the 
permanent  fund  of  the  Merchants'  Association.  The  old 
account  books  and  accumulated  records  of  years  were  sold, 
and  so  high  was  the  price  of  waste  paper  that  they  produced 
$1,174.63.  Finally,  from  the  sale  of  gold,  a  special  dividend 
of  twenty-five  per  cent,  was  given  the  stockholders  out  of  the 
surplus  in  January,  1865,  amounting  to  $375,000, 

Upon  April  6,  1865,  having  got  into  practical  operation 
under  the  National  Banking  Acts,  the  Philadelphia  National 
Bank  made  its  statement  to  the  Comptroller  of  the  Currency 
at  Washington,  which  is  attested  by  the  familiar  signature  of 
B.  B.  Comegys,  Cashier.  The  aggregate  assets  were  $6,873,- 
224.17.  Included  were  $3,371,236  loans  and  discounts, 
$1,356,912  United  States  bonds  and  securities,  $132,070  due 
from  banks,  and  the  banking  house  $150,000,  The  cash  held 
consisted  of  $88,944  specie,  $14,140  notes  of  various  banks, 
and  $1,717,295  lawful  money  of  the  United  States.  On  the 
other  side  of  the  account  were  deposits  $3,049,073,  due  to 
banks  $945,561,  circulation  $449,980,  discount  and  interest 
$136,963,  surplus  and  contingent  fund  $791,645,  and  capital 
$1,500,000. 


158  The  Philadelphia  National  Bank 

RECUPERATION  AND  RECONSTRUCTION 

After  the  close  of  the  war  the  great  task  of  the  country 
was  to  assimilate  the  new  conditions.  The  armies  were  grad- 
ually disbanded,  and  the  soldiers  returned  to  the  pursuits  of 
peace.  The  Treasury  disbursed  enormous  sums  throughout 
1865  and  1866  in  paying  war  expenses  and  adjusting  claims, 
creating  large  additional  loans  and  pouring  out  more  paper 
money.  The  long  and  tedious  task  of  Southern  reconstruction 
was  entered  upon.  Another  change  came  in  banking  methods, 
due  to  the  revival  of  many  industries  previously  dormant  and 
the  shock  of  rapidly  declining  prices  from  the  fall  of  the 
gold  premium,  the  latter,  however,  checked,  and  at  times 
even  advanced,  by  the  enormous  Government  emissions  of 
paper  money  and  bonds.  The  minutes  of  the  Philadelphia 
National  Bank  directors  at  this  period  make  repeated  records 
of  donations  to  the  sick  and  wounded  soldiers,  to  the  hospitals, 
and  to  the  soldiers'  orphans  in  the  Lincoln  Institution,  then 
just  founded.  In  1865  and  1866  the  Bank  dividends  were 
fifteen  per  cent,  each  year. 

The  declining  prices  and  changes  in  business  methods 
after  the  war  produced  numerous  failures.  These  troubles 
extended  abroad,  and  we  find  the  Bank  conservatively  con- 
ducted under  the  new  conditions.  In  1866  the  suspension  of 
Overend,  Gurney  &  Co.  caused  a  period  of  serious  embarrass- 
ment in  London,  continuing  throughout  that  year,  the  Bank 
of  England  discount  rate  being  advanced  to  ten  per  cent. 
This  was  followed  in  January,  1867,  by  exciting  flurries  in 
the  American  stock  markets  and  more  failures.  Cotton  sold 
at  35  cents  and  the  gold  premium  was  at  141.  The  revival 
of  commercial  enterprise  in  new  channels  had,  however,  been 
steadily  enlarging  the  business  of  the  Philadelphia  National 
Bank,  so  that  it  was  decided  to  increase  the  official  staff. 


Recuperation  and  Reconstruction         159 

To  partly  relieve  President  Robins,  on  January  10,  1867,  Mr. 
Benjamin  B.  Comegys  was  elected  a  director  and  vice-presi- 
dent of  the  Bank,  and  the  office  of  assistant  cashier  was  then 
created,  and  Mr.  Benjamin  F.  Chatham  appointed  to  that 
position.  Then  another  period  of  stress  came,  and  the  op- 
pression of  debts,  which,  from  declining  prices,  had  become 
so  serious  throughout  the  country,  led  Congress  to  enact  a 
general  bankrupt  law  in  March,  1867.  In  July  the  death  of 
Marshall  Hill,  one  of  the  active  directors  of  the  Bank,  was 
recorded  in  an  appropriate  minute.  In  1867  the  dividends 
were  sixteen  per  cent.,  and  in  1868  fifteen  per  cent. 

There  came  in  1868  serious  troubles  about  the  repeated 
issues  of  Erie  Railway  shares  under  the  Gould  regime,  resulting 
in  a  "corner"  in  November,  and  demoralizing  the  stock 
markets.  This  caused  the  New  York  Stock  Exchange  to 
require  all  stocks  to  be  registered.  There  was,  however,  in 
1869,  a  considerable  revival  of  active  commercial  business. 
This  received  a  sudden  shock  in  September,  through  the  wild 
speculation  in  gold,  which  culminated  in  the  famous  "Black 
Friday"  collapse.  Prior  to  Wednesday,  September  22,  1869, 
the  price  of  gold  had  been  ranging  at  136  and  137,  with  quiet- 
ness, but  with  a  steady  demand  from  importers,  who  had 
to  buy  it  to  pay  Custom  House  duties.  That  morning,  how- 
ever, there  appeared  a  sudden  and  greatly  enlarged  speculative 
demand,  making  fluctuations,  and  at  times  much  excitement 
in  the  New  York  Gold  Exchange.  The  price  advanced  from 
137  to  i4ii,  and  the  transactions  of  the  day  aggregated  the 
large  total  of  $324,524,000,  most  of  the  trading  being  pure 
gambling,  as  barely  $3,000,000  gold  actually  changed  hands 
in  the  settlements. 

It  was  the  custom  of  the  Treasury  to  provide  a  supply, 
by  selling  gold  at  intervals.  George  S.  Boutwell  was  the 
Secretary  of  the  Treasury,  and  strong  appeals  were  made  to 


i6o  The  Philadelphia  National  Bank 

him  for  large  sales,  some  suggesting  that  eighty  to  ninety 
millions  should  be  thus  offered  to  relieve  the  market.  The 
speculation  was  based  on  the  idea  that  control  could  be  exerted 
by  a  relative  of  President  Grant  to  prevent  a  Treasury  sale 
of  gold.  On  Thursday,  the  23d,  there  was  a  larger  speculation, 
great  excitement,  and  the  price  advanced  to  i44i.  Along  with 
this  was  an  increased  demand  for  bank  loans,  with  call  money 
at  eight  per  cent,  and  mercantile  paper  up  to  ten  and  twelve 
per  cent.  The  Thursday  gold  transactions  were  larger  than 
those  of  Wednesday.  The  crisis  was  on  Friday;  the  price 
was  rushed  up  to  150  at  the  opening  with  wild  excitement, 
and  then  to  162 J,  the  Gold  Exchange  being  a  perfect  Bedlam, 
and  most  enormous  trading  going  on,  of  which  it  was  im- 
possible to  keep  any  correct  account.  The  collapse  came  with 
startling  suddenness,  the  price  falling  to  134,  and  shortly 
afterward  it  was  telegraphed  from  Washington  that  the 
Treasury  would  sell  $4,000,000  gold  on  Saturday,  and  to 
give  monetary  relief  would  also  buy  $4,000,000  bonds.  The 
day  closed  with  gold  at  133. 

The  gold  transactions  of  "Black  Friday"  were  estimated 
at  $500,000,000,  but.  it  was  entirely  impossible  to  keep  track 
of  the  engagements  made,  and  nine  firms  failed.  The  Gold 
Exchange  closed  for  a  week  to  enable  its  tangled  affairs  to 
be  straightened  out.  It  was  discovered  afterward  that  the 
speculation  collapsed  when  the  news  was  obtained  that  the 
President  had  peremptorily  ordered  the  sale  of  gold.  On 
Saturday  the  Secretary  sold  only  two  millions  at  132 J  to 
1 34 J,  declining  all  bids  below  the  lower  figure.  When  the 
Gold  Room  reopened  October  ist,  the  placid  condition  reap- 
peared, with  the  gold  quotation  around  130.  The  stock  market 
was  demoralized  and  general  business  deranged  during  this 
period  of  excitement.  At  the  close  of  1869,  gold  had  declined 
to  120. 


The  Panic  of  1873  161 

The  Philadelphia  National  Bank  moved  quietly  in  this 
brief  crisis.  The  flurry  in  gold  did  not  affect  it,  for  it  held 
so  little.  Out  of  $2,070,500  cash  in  the  Bank  on  September 
27th,  the  gold  and  silver  were  only  $34,575,  while  the  legal 
tenders  were  $584,862.  The  basis  of  banking  was  the  latter, 
with  $310,000  Clearing  House  certificates  and  $420,000  three 
per  cent.  Treasury  notes.  When  the  account  was  made  up 
for  the  dividend  in  November,  the  Bank  held  $7,185,769 
assets,  of  which  $1,150,000  was  in  United  States  bonds.  The 
Bank  dividends  in  1869  and  in  1870  were  fourteen  per  cent, 
for  each  year.  During  the  decade  ending  with  1870,  not- 
withstanding the  depression  that  prevailed  at  the  outbreak  of 
the  war,  the  Philadelphia  Bank  paid  its  stockholders,  in  divi- 
dends, 150  per  cent. 

In  August,  1871,  we  find  the  Bank  subscribing  $500,000 
to  a  new  five  per  cent,  loan  of  the  United  States,  and  placing 
the  amount,  August  31st,  to  the  credit  of  the  United  States 
Treasurer.  In  October,  187 1,  the  great  Chicago  fire  came, 
followed  by  another  serious  stock  market  panic  and  declines 
in  prices,  though  a  recovery  soon  followed.  About  a  year 
later,  in  November,  1872,  the  great  fire  in  Boston  brought 
a  second  period  of  pronounced  depression.  In  1871  and 
1872  and  for  a  series  of  years  aftenvard  the  dividends  of  the 
Philadelphia  Bank  w^ere  uniformly  fourteen  per  cent,  annually. 
Mr.  Comegys,  in  January,  1872,  resigned  the  post  of  cashier, 
devoting  himself  exclusively  to  the  increasing  duties  of  the 
vice-presidency,  and  Mr.  B.  F.  Chatham,  on  January  15th, 
was  elected  cashier. 


THE  PANIC  OF  1873 

The  first  railway  route  across  the  Continent,  by  the  Union 

and  Central  Pacific  Railways,  was  completed  in  1869.     This 
II 


i62  The  Philadelphia  National  Bank 

gave  great  impetus  to  the  progress  of  the  West,  stimulating 
all  kinds  of  business,  particularly  manufactures  and  railroad 
building.  During  three  or  four  years  afterward  an  enormous 
amount  of  capital  was  invested  in  these  enterprises.  The 
construction  of  the  Suez  Canal,  and  the  beginning  of  active 
traffic  through  it  in  1870,  had  also  stimulated  maritime  trade. 
The  substitution  of  steel  for  iron  rails  had  been  of  vast  bene- 
fit to  the  railroads  in  cheapening  transportation  expenses, 
and  also  tended  to  enlarge  the  railway  development  of  the 
far  West,  bringing  large  areas  of  new  lands  within  reach 
of  markets.  The  cost  of  steel  rails,  which  were  $166  per 
ton  in  1867,  had  declined  to  $112  in  1872.  There  conse- 
quently came  an  excessive  development  of  railways,  factories, 
industries,  ships  and  land  cultivation,  the  energies  of  the 
people,  previously  devoted  to  the  war,  being  mostly  employed 
in  these  enterprises.  Much  of  this  work  was  done  on  bor- 
rowed capital  at  high  interest  rates  based  on  the  inflated 
prices  of  former  years.  By  1872  capital  had  been  duplicated 
by  these  processes  to  such  an  extent  that  it  was  no  longer 
possible  to  sell  all  the  products  at  the  former  high  prices. 
First  in  manufactured  goods,  then  railway  securities,  and 
finally  farm  products,  came  decided  declines. 

The  Granger  agitation  had  been  growing  in  the  South 
and  West,  and  from  the  original  proposition  to  issue  unlimited 
amounts  of  greenbacks,  which  were  to  be  used  to  pay  the 
public  debt,  the  suggestion  extended  to  other  forms  of  invest- 
ment, so  that  capitalists  and  investors  were  frightened.  They 
became  afraid  of  railroad  securities,  and  this  feeling  crippled 
those  corporations  which  were  almost  entirely  deprived  of 
necessary  financial  help.  Out  of  the  accumulating  troubles 
came  the  great  panic  of  1873.  I^  April,  1873,  there  was  a 
premonitory  symptom  in  the  failure  of  the  Atlantic  Bank  of 
New  York.     The  financial  stress  became  acute  in  September. 


The  Panic  of  1873  16 


o 


On  the  8th  the  New  York  Warehouse  and  Security  Company 
failed.  This  made  such  an  impairment  of  confidence  that  a 
run  followed  upon  most  of  the  institutions  and  houses  that 
had  the  reputation  of  being  burdened  with  railroad  securities. 
On  September  15th  we  find  a  note  of  caution  in  the  Philadel- 
phia National  Bank,  the  board  passing  a  resolution  "that 
no  discounts  or  loans  shall  be  made  by  this  Bank  upon  non- 
dividend,  or  non-interest  paying  stocks  or  bonds." 

The  Philadelphia  National  Bank,  upon  this  date,  Sep- 
tember 15th,  which  was  just  at  the  entrance  of  the  acute 
period  of  the  panic,  had  $5,705,000  loans,  $4,437,000  deposits, 
and  $1,000,000  circulation.  The  reserves  were  $1,595,000, 
and,  in  addition,  the  Bank  held  $55,000  specie.  The  money 
market  was  getting  stringent,  with  paper  quoted  from  8  to 
12  per  cent,  for  time  and  6  per  cent,  for  call  loans.  The 
gold  premium  had  gradually  been  declining  and  was  at  in 
to  112.  During  the  following  week  the  conditions  got  worse. 
The  Eclectic  Life  Insurance  Company  of  New  York  and 
the  Brooklyn  Trust  Company  failed,  and  various  railroads 
made  announcements  that  they  could  not  meet  their  bond 
interest  coming  due.  Among  the  corporations  which  were 
seriously  overweighted  was  the  Northern  Pacific  Railroad, 
and  on  September  i8th  the  country  was  startled  by  the  an- 
nouncement of  the  failure  of  Jay  Cooke  &  Co.,  who  were 
financing  it.  This  made  an  enormous  sensation,  and  at  once 
the  money  market  and  all  commercial  business  became 
demoralized.  There  was,  however,  very  small  effect  upon 
the  gold  premium,  which  only  advanced  to  113I,  and  in  a 
few  days  had  fallen  back  to  iiif. 

Upon  September  19th  runs  were  made  on  various  financial 
institutions  and  many  failures  were  announced.  Scores  of 
stock  houses  and  commercial  firms  suspended,  owing  to 
inability  to  get  loans.     The  panic  was  so  severe  that  the 


i64  The  Philadelphia  National  Bank 

New  York  Stock  Exchange  was  closed  for  three  days.  Capital- 
ists were  afraid  to  loan  money  and  rates  advanced  to  very 
high  figures.  Upon  the  19th,  to  give  relief,  the  New  York 
bank  officers  met  and  authorized  the  issue  of  $10,000,000 
loan  certificates,  and  they  also  immediately  collected  and 
sold  to  the  Treasury  $10,000,000  United  States  bonds,  thus 
strengthening  their  position  by  fresh  accessions  of  money. 
The  banks  in  Philadelphia,  on  the  24th,  followed  the  example, 
and  also  authorized  an  issue  of  loan  certificates,  this  giving 
much  relief. 

Mr.  Comegys,  of  the  Philadelphia  National  Bank,  some 
years  later,  in  a  statement  that  on  five  different  occasions 
the  Philadelphia  Clearing  House  had  resorted  to  the  issue  of 
these  certificates,  made  a  lucid  explanation  of  their  character. 
He  said  that  these  certificates,  bearing  six  per  cent,  interest, 
were  issued  to  the  various  banks  applying  for  them,  and 
always  on  deposit  of  satisfactory  collateral  security,  and  they 
were  receivable  only  in  payment  of  daily  balances  at  the 
Clearing  House.  The  purpose  was  to  enable  the  banks  in 
time  of  panic  to  accommodate  the  commercial  community  by 
discounting  paper  to  a  larger  amount  than  their  cash  reserves 
would  warrant,  and  when  such  loans  made  a  bank  a  debtor, 
the  certificates  could  be  used  in  settlement  instead  of  cash. 
They  were  never  used  to  pay  checks,  or  to  pay  debts  due 
banks  elsewhere  than  in  our  own  Clearing  House.  Mr. 
Comegys  said:  ''The  device  is  a  convenient  one  under  extreme 
circumstances,  but  should  never,  otherwise,  be  resorted  to." 
We  find  the  Philadelphia  National  Bank  board,  on  September 
25th,  giving  the  president  authority  to  lodge  securities  with 
the  Clearing  House  Committee  for  the  issue  of  loan  certificates. 

The  panic,  thus  begun,  was  severe  and  long-continuing, 
and  the  country  did  not  recover  from  its  effects  for  several 
years.     As  the  whole  world  was  involved  in  unsound  specula- 


WIIJJAM    POTTER. 


The  Panic  of  1873  165 

tion,  the  financial  troubles  became  widespread.  Congress, 
under  the  Granger  inspiration,  was  quick  to  express  its  belief 
that  the  trouble  came  from  the  need  of  more  currency,  and 
in  1874  passed  a  bill  for  further  inflation,  but  President  Grant, 
who  held  sounder  views,  vetoed  it.  In  the  midst  of  these 
difficulties  Philadelphia  was  then  organizing  the  great  Cen- 
tennial Exposition  of  1876,  and  there  is  a  record  of  a  sub- 
scription by  the  Philadelphia  National  Bank  of  five  hundred 
shares  of  stock  in  the  Centennial  Finance  Fund.  There  is 
also  a  minute  announcing  the  death,  on  November  10,  1873, 
at  the  age  of  ninety-three,  of  the  venerable  Samuel  W.  Jones, 
who  had  been  so  long  a  director,  and  afterward  the  chairman 
of  the  stockholders'  annual  meetings,  it  being  recorded  that 
he  was  the  last  surviving  signer  of  the  original  Articles  of 
Association,  forming  the  Philadelphia  Bank  in  1803. 

The  financial  troubles  depressing  the  country  became 
worse  in  1874,  while  the  three  following  years  produced  even 
greater  distress  throughout  Europe,  as  well  as  in  the  United 
States.  Yet  the  Philadelphia  National  Bank  was  able  to 
continue  its  regular  semi-annual  dividends  of  seven  per  cent, 
during  all  these  years,  reducing  the  rate,  however,  to  six  per 
cent,  in  May,  1878.  The  Philadelphia  Bank  statement  of 
May,  1875,  showed  aggregate  assets  of  nearly  $8,000,000, 
while  the  Bank  had  $893,845  surplus  and  net  profits,  $4,831,- 
606  deposits,  and  $720,000  circulation.  In  the  summer  of 
1877  the  business  difficulties  and  depression  were  intensified 
by  general  railway  strikes,  owing  to  the  decline  of  wages 
and  falling  off  of  railway  traffic.  These  produced  riots  and 
bloodshed,  necessitating  the  calling  out  of  troops  and  the 
interposition  of  the  strong  arm  of  the  Federal  Government. 
During  this  time  of  very  serious  trouble  the  peace  of  Phila- 
delphia was  threatened.  The  Mayor  had  to  divert  the  police 
force  to  the  suppression  of  outbreaks  and   secure  an  extra 


i66  The  Philadelphia  National  Bank 

corps  to  do  their  ordinary  patrol  duty.  The  banks  of  the 
city  provided  him  with  the  money  necessary  to  pay  the  latter, 
and  on  July  26th  the  Philadelphia  National  Bank  board 
authorized  the  president  to  act  in  this  matter,  and  on  the  30th 
he  reported  he  had  loaned  the  city  $1,000  to  assist  the  Mayor, 
William  S.  Stokley,  in  raising  $30,000  for  the  purpose. 


FINAL  RESUMPTION  OF  SPECIE  PAYMENTS 

During  the  time  of  most  serious  depression  following  this 
panic,  Congress  passed  the  Act  of  January  14,  1875,  ^C)r  the 
"Resumption  of  Specie  Payments."  The  price  of  gold  had 
remained  nearly  stationary  since  1873,  and  was  about  112 
when  this  law  was  passed.  There  was  an  almost  universal 
impression  that  if  the  Treasury  could  secure  a  sufficient 
supply  of  gold,  the  legal  tender  notes  could  be  maintained 
at  par,  and  thus  insure  the  stability  of  all  the  currency.  The 
policy  of  excessive  issues  of  greenbacks  had  lost  support  after 
the  veto  of  the  previous  year,  and  the  leading  financiers 
then  formed  a  new  plan,  which  produced  the  Resumption  Act, 
and  gave  ample  time  to  carry  its  provisions  into  effect.  This 
law  of  1875  declared  that  after  January  i,  1879,  the  Secretary 
of  the  Treasury  should  redeem  in  coin  the  United  States  legal 
tender  notes.  To  do  this  he  was  empowered  to  use  any 
surplus  revenues  not  other^^ise  appropriated,  and  to  sell 
United  States  bonds  at  not  less  than  par  in  gold. 

Toward  the  end  of  1877  an  improvement  began  gradually 
spreading  over  the  country.  The  preparations  for  resumption 
had  been  going  on  quite  successfully,  and  gave  such  reassurance 
that  the  gold  premium  steadily  declined.  Speculation  in  gold, 
which  formerly  had  been  on  a  vast  scale,  now  became  so 
small  that  the  New  York  Gold  Exchange  in  May  went  out 
of   existence.     By   January,    1878,    the   premium   was   down 


Final  Resumption  of  Specie  Payments      167 

almost  to  one  per  cent.,  becoming  simply  a  commission  given 
by  importers  to  get  gold  to  pay  duties,  and  in  March  it  had 
declined  below  one  per  cent.  The  general  business  recupera- 
tion was  slow  in  1878,  but  the  specie  resumption  came  into 
practical  operation  at  the  close  of  the  year,  as  the  law  required, 
and  then  the  recovery  was  more  rapid,  with  an  enormous 
boom  in  the  stock  market  in  the  autumn  of  1879.  Ever 
since  January  i,  1879,  all  the  money  of  the  United  States 
of  every  description  has  been  maintained  at  par  in  gold.  The 
growth  of  confidence  and  expansion  of  wealth  continued  there- 
after for  several  years. 

It  was  at  the  opening  of  1879,  with  the  generally  roseate 
outlook  of  business  affairs  then  so  promising,  that  President 
Thomas  Robins,  admonished  by  the  weight  of  advancing 
years,  decided  to  retire  from  the  office  he  had  so  long  and 
acceptably  filled.  Upon  January  6th  he  made  the  formal 
announcement  to  the  board  in  a  felicitious  address  in  which 
he  stated  his  intention  of  declining  a  renomination  by  the  new 
board  of  directors  to  be  elected  on  the  14th.  The  board 
unanimously  resolved  to  invite  ]Mr.  Robins  to  act  as  advisory 
member,  with  an  office  in  the  Bank,  and  also  adopted  a  minute 
giving  a  history  of  Mr.  Robins'  long  connection  with  the 
institution,  and  their  high  appreciation  of  his  services. 

This  minute  was  beautifully  engrossed,  signed  by  the 
directors,  framed,  and  presented  to  Mr.  Robins.  He  had  been 
the  president  for  twenty-seven  years,  guiding  the  Bank  through 
times  of  severest  trial — the  panic  of  1857,  the  war  of  the  Re- 
bellion, and  the  panic  of  1873.  Yet  during  the  period  the 
Bank  had  paid  dividends  of  $5,220,867,  averaging  over  thirteen 
per  cent,  per  annum,  and  the  contingent  fund  had  been  in- 
creased from  $290,000  to  $750,000.  Not  a  single  director 
remained  in  the  board  in  1879  ^^'ho  was  a  member  when  Presi- 
dent Robins  was  elected  in  1852.     The  minute  highly  com- 


i68  The  Philadelphia  National  Bank 

mended  his  conservative  management  and  irreproachable 
character,  and  expressed  gratification  that  "the  time  chosen  to 
relinquish  the  cares  and  responsibilities  of  his  office  is  pro- 
pitious with  indications  of  returning  prosperity,  and  the  position 
of  the  Bank,  the  foremost  among  all  her  sister  institutions 
in  this  city."  Mr.  Robins  continued  his  attendance  at  the 
directors'  meetings  with  rare  punctuality,  until  a  few  days 
before  his  death,  in  April,  1882. 


VIII 
CLOSING  YEARS  OF  THE  CENTURY 

1879-1903 


VIII 

CLOSING  YEARS  OF  THE  CENTURY 
1879-1903 

The  Administration  of  President  Comegys — Progress  of 
the  Bank — Various  Financial  Panics — Mr.  Comegys 
Closing  Years — President  N.  Parker  Shortridge,  his 
Successor. 

ADMINISTRATION  OF  PRESIDENT  COMEGYS 

UPON  January  i6,  1879,  Benjamin  B.  Comegys 
was  elected  President  of  the  Philadelphia  National 
Bank.  It  is  universally  conceded  that  Mr.  Com- 
egys was  one  of  the  most  prominent  bankers  of  the  United 
States,  and  that  he  occupied  the  front  rank  among  the  man- 
agers of  the  institution  to  which  he  devoted  his  life-work  of 
more  than  a  half-century.  It  is  noteworthy  that  this  eminent 
financier  was  born  in  a  bank,  the  Farmers'  Bank  of  Dover, 
Delaware,  of  which  his  father  was  the  cashier,  on  May  9, 
1819.  He  came  to  Philadelphia  in  early  life,  and  after  serving 
for  about  eleven  years  in  two  Market  Street  dry-goods  houses, 
was  elected  a  clerk  in  the  Philadelphia  Bank  in  1848,  upon 
May  nth,  when  he  had  just  passed  his  twenty-ninth  birthday. 
He  had  served  a  little  over  three  years  in  various  capacities, 
when  he  was  made  the  cashier  August  28,  1851 ;  upon  January 
10,  1867,  he  was  elected  the  first  vice-president,  and  January 
16,  1879,  the  president.  He  filled  the  presidency  for  over 
twenty-one  years,  until  his  death  on  March  29,  1900,  having 

thus  faithfully  served  the  Bank  for  nearly  fifty-two  years. 

171 


172  The  Philadelphia  National  Bank 

Under  his  management  the  Philadelphia  National  Bank 
reached  a  high  point  in  its  career,  in  fame  and  prosperity 
alike.  When  Mr.  Comegys  was  elected  president,  he  made 
a  brief  and  modest  speech  which  sounded  the  keynote  of  his 
idea  of  banking.  He  described  the  office  as  honorable,  but 
as  a  place  of  great  trust  and  responsibility.  "There  are,"  he 
said,  "but  two  general  principles  which  should  govern  those 
who  have  the  care  of  financial  institutions — Safety  and  Profit. 
Much  depends  on  the  order  in  which  these  two  are  considered. 
I  believe  that  the  first  thing  to  be  thought  of  is  Safety,  and 
next  to  that,  Profit.  Capital  first.  Dividend  next.  There 
are  but  two  methods  of  Bank  government,  personal  and 
constitutional;  a  government  by  one  man,  or  a  government 
by  a  Board  of  Directors.  This  Bank,  in  a  most  conspicuous 
degree,  has  been  governed  by  its  Board  of  Directors.  I  have 
no  wish  to  change  this  policy.  I  shall  give  my  whole  time 
in  the  hours  of  banking,  to  the  duties  with  which  I  am  charged, 
and  I  shall  depend  upon  you  to  aid  me  with  your  counsels 
in  all  my  official  duties." 

The  estimate  in  which  Mr.  Comegys  was  held  in  Phila- 
delphia was  shown  by  the  other  positions  to  which  he  was 
appointed  during  his  long  and  useful  life.  He  was  a  manager 
of  the  American  Sunday  School  Union,  manager  of  the  House 
of  Refuge,  trustee  of  the  Jefferson  Medical  College,  member 
of  the  Board  of  Public  Education,  and  director  of  the  Board 
of  City  Trusts  managing  the  Girard  Estate;  and  in  financial 
capacities  he  was  made  a  director  and  vice-president  of  the 
Philadelphia  Trust,  Safe  Deposit  and  Insurance  Company, 
manager  of  the  Western  Saving  Fund  Society,  and  director 
of  the  Pennsylvania  Railroad  Company.  In  the  Clearing 
House,  he  was  for  over  forty  years  a  member  of  the  Clearing 
House  Committee,  and  its  chairman  during  the  last  fifteen 
years  of  his  life.    No  Philadelphian  was  ever  held  more  trust- 


KinVARD   T.    STOTESBURY. 


The  Administration  of  President  Comegys    173 

worthy  or  in  higher  esteem,  and  his  death  was  regarded  as  a 
general  calamity. 

His  coat  of  anns,  a  spotless  life, 

An  honest  heart  his  crest; 
Quartered  therewith  was  innocence, 

And  thus  his  motto  ran, — 
"  A  conscience  void  of  all  offense, 

Before  both  God  and  man." 

Mr.  Comegys  was  a  gentleman  of  fine  literary  tastes,  an 
author  of  reputation,  and  in  1894  the  Jefferson  Medical  College 
conferred  upon  him  the  degree  of  LL.D.  He  had  an  extensive 
and  valuable  library  containing  the  best  English  literature, 
and  his  recreation  from  the  cares  of  banking  was  largely  among 
his  books.  In  1893  he  published  A  Tour  Round  My  Library^ 
a  collection  of  literary  essays,  with  descriptions  of  his  books  and 
their  authors,  which  he  dedicated  to  "The  Philadelphia  Bank, 
the  Oldest  Bank  in  the  City  Chartered  by  the  Commonwealth." 
There  are  nearly  a  score  of  interesting  volumes  which  he  has 
published,  many  of  them  devotional  works,  manuals  for  wor- 
ship and  prayers,  others  containing  his  addresses  on  various 
public  occasions,  and  essays  especially  for  the  guidance  of 
young  people,  in  which  he  was  peculiarly  adept.  His  Primer 
of  Ethics,  published  in  Boston,  has  been  translated  into 
Italian,  Arabic,  and  Japanese.  He  was  especially  happy  in 
his  business  and  banking  addresses,  which  have  had  wide  cir- 
culation, and  one  of  them,  What  Manner  oj  Man  Should  a 
Banker  Be?  has  been  repeatedly  reprinted.  It  was  an  address 
made  to  the  American  Bankers'  Association  in  Baltimore, 
October,  1894.  While  his  fame  as  a  banker  leads,  the  repu- 
tation of  Mr.  Comegys  in  his  favorite  field  of  literature  and 
authorship  is  widely  known. 

When  Mr.  Comegys  became  the  president  of  the  Phila- 
delphia National  Bank,  its  statement  made  January  i,  1879, 


174  The  Philadelphia  National  Bank 

showed  aggregate  assets  of  $9,786,449.  The  loans  were 
$5,505,086,  due  from  banks  $163,766,  and  the  cash  and 
reserve,  including  exchanges  for  Clearing  House,  $4,117,597. 
The  deposits  were  $6,866,519,  the  circulation  $772,730,  and 
the  surplus  or  contingent  fund  and  net  profits  $772,730,  with 
$1,500,000  capital. 

Nearly  twenty  years  later,  in  1898,  Mr.  Comegys  in  the 
course  of  an  address  described  the  requisites  of  a  sound  bank 
in  the  following  terms:  "A  bank  may  be  said  to  be  in  good 
condition  when  it  has  an  adequate  Capital  (not  too  large),  a 
Contingent  Fund  at  least  half  as  large  as  the  Capital;  when 
its  dealers  supply  it  with  business  paper  to  the  extent  of  its 
needs;  when  it  has  a  Board  of  Directors  who  are  not  content 
to  be  mere  figureheads,  but  who  understand  their  business 
and  remember  their  qualification  oaths:  Directors  who  count 
the  cash  frequently,  who  insist  that  every  person  in  the  em- 
ployment of  the  Bank  shall  take  a  vacation  every  year,  and 
who  believe  that  'nothing  is  good  enough  that  can  be  made 
better.'" 

PROGRESS  OF  THE  BANK 

The  Philadelphia  National  Bank  during  its  subsequent 
career  did  not  make  much  of  what  might  be  called  history. 
The  old  philosopher  has  told  us  that  "happy  is  the  nation 
which  has  no  history,"  and  so  it  is  with  a  financial  institution. 
The  Bank  under  its  careful  and  conservative  management 
went  steadily  along,  increasing  in  strength,  and  constantly 
enlarging  its  business.  The  surplus  and  net  profits,  which 
were  $772,730  at  the  beginning  of  1879,  were  $871,959  in 
November,  1880;  $975,144  in  November,  1885;  $1,127,232 
in  November,  1890;  $1,169,330  in  December,  1895;  and 
$1,658,514  in  December,  1900.  The  aggregate  assets  of 
$9,786,449  in  January,   1879,  had  increased  to  $10,287,501 


Progress  of  the  Bank  175 

in  November,  1880;  $12,633,373  in  December,  1895;  and 
$31,626,029  in  December,  1900. 

The  Bank  was  skilfully  guided  through  repeated  periods 
of  financial  stress  and  panic.  President  Garfield  was  shot 
early  in  July,  1881,  causing  an  enormous  derangement  of 
the  stock  markets,  and  declines  in  all  values,  culminating 
the  following  September  in  Henry  Villard's  "blind  pool" 
operations,  and  in  the  subsequent  year  followed  by  repeated 
Stock  Exchange  "corners,"  and  in  1883  by  the  second  Northern 
Pacific  Railway  catastrophe.  This  came  closely  upon  the 
famous  "driving  of  the  golden  spike,"  when  Henry  Villard 
and  Sitting  Bull  were  the  chief  actors  in  a  weird  drama  on 
the  Dakota  plains  which  ended  in  a  Wall  Street  cataclysm. 
In  May,  1884,  there  was  another  general  collapse  in  New 
York,  the  Marine  Bank  suspending,  followed  by  the  Grant 
&  Ward  failure  two  days  later,  and  on  May  14th  by  the  Metro- 
politan Bank  suspension,  making  a  wild  panic,  so  that  the 
next  day  the  banks  were  compelled  again  to  resort  to  an  issue 
of  loan  certificates.  This  caused  depression  during  the  re- 
mainder of  the  year,  but  it  was  overcome  by  the  financial 
genius  of  ]\Ir.  J.  Pierpont  Morgan,  who  arranged  for  the 
absorption  of  the  West  Shore  Railroad  by  the  New  York 
Central  Railroad  in  July,  1885,  a  coup  which  produced  a 
complete  transformation,  and  caused  another  stock  market 
boom. 

During  this  period  there  were  some  changes  in  the  staff 
of  the  Bank.  Mr.  B.  F.  Chatham,  who  had  succeeded  Mr. 
Comegys  as  cashier  in  1872,  died  in  November,  1879,  much 
to  the  regret  of  the  board,  and  was  succeeded  by  James  ]M. 
Gregg  on  December  nth.  Mr.  Gregg  resigned  in  November, 
1883,  and  James  W.  Torrey  was  elected  cashier  December 
13th.  Mr.  Benjamin  B.  Comegys,  Jr.,  the  only  son  of  the 
president,  had  entered  the  Bank  as  a  clerk  in  1S80,  and  upon 


176  The  Philadelphia  National  Bank 

January  4,  1883,  was  appointed  assistant  cashier.  Upon 
November  20,  1884,  young  j\Ir.  Comegys  died.  Upon  April 
17,  1882,  the  board  adopted  a  minute  expressive  of  its  high 
regard  for  the  venerable  ex-President  Thomas  Robins,  whose 
death  had  occurred  just  previously  to  the  meeting.  Another 
minute,  upon  July  23,  1885,  records  the  universal  sorrow 
produced  by  the  death  of  General  Ulysses  S.  Grant. 

When  John  Welsh,  the  "Father  of  the  Bank,"  died  in 
1854,  his  place  at  the  board  had  been  taken  by  his  sons,  who 
filled  it  alternately,  Samuel  Welsh  and  John  Welsh.  The 
latter,  who  was  one  of  the  most  distinguished  citizens  of  Phila- 
delphia, foremost  in  its  service  in  many  capacities,  the  president 
of  the  Board  of  Trade,  the  head  of  the  Centennial  Board  of 
Finance,  and  American  Minister  to  England,  died  April 
10,  1886.  He  had  been  a  director  at  various  periods  since 
May,  1857,  and  the  minute  of  the  board  on  April  12th  records 
his  excellent  service  during  the  very  serious  panics  of  1857 
and  1873,  and  the  trying  times  of  the  war  of  the  Rebellion. 
To  the  statement  of  his  valuable  work  for  the  Bank,  the  minute 
adds  this  deserved  personal  tribute:  "Those  of  us  who  have 
been  associated  with  Mr.  Welsh  here,  will  never  forget  his 
genial,  attractive  and  most  affectionate  address  and  com- 
panionship. His  whole  life  also  was  well  balanced  and  sub- 
stantial; a  beautiful  illustration  of  all  that  is  noble  and  Chris- 
tian in  human  character.  He  was,  in  the  highest  and  best 
sense,  a  true  American;  he  was  a  Philadelphia  gentleman 
and  our  first  citizen."  Samuel  Welsh,  the  elder  brother, 
resigned  in  January,  1890,  after  a  service  covering  forty  years 
as  director,  at  various  periods. 

Death  was  busy,  removing  several  of  the  older  directors 
during  the  years  following  Mr.  Comegys'  election  as  president. 
In  April,  1880,  John  E.  Cope  died;  in  March,  1885,  George 
Whitney;  in  September,  1890,  William  Brockie;  in  November, 


Various  Financial  Panics  177 

1891,  Edward  Y.  Townsend;  and  in  May,  1895,  Alfred  M. 
Collins.  One  of  the  most  faithful  employees  of  the  Bank, 
Joseph  Roberts,  died  March  23,  1886,  and  the  board  ordered 
engrossed  upon  its  minutes  a  most  feeling  tribute  to  his  in- 
tegrity and  excellent  service  for  over  thirty-three  years,  giving 
him  this  high  record:  "In  all  the  years  of  faithful  service, 
conscientiously  performed,  he  never  swerved  from  the  path 
of  duty.  He  never  seemed  to  consider  himself,  but  always 
the  Bank.  He  entered  at  the  lowest  place,  but  very  soon 
rose  to  a  position  of  confidential  relations  with  the  upper 
officers  and  directors,  which  he  maintained  with  increasing 
respect  and  affection  until  his  death.  No  shadow  ever  rested 
on  his  good  name ;  no  reproof  or  rebuke  was  ever  administered ; 
no  sharp  word  was  ever  spoken;  with  literal  truth  may  it  be 
said  of  him, — 'Well  done,  good  and  faithful  servant.'" 


VARIOUS  FINANCIAL  PANICS 

Upon  May  11,  1888,  President  Comegys  began  his  forty- 
first  year  of  service  with  the  Philadelphia  Bank,  and  on  the 
preceding  day  the  Board  of  Directors  took  appropriate  action, 
entering  upon  the  minutes  an  elaborate  statement  of  his  long 
and  faithful  career  and  their  high  appreciation  of  the  "lasting 
benefits  which  have  resulted."  It  recited  the  list  of  successive 
posts  of  duty  he  had  filled,  the  many  periods  of  perils  through 
which  the  Bank  had  been  guided,  and  mournfully  recorded  that 
"one  by  one,  those  with  whom  he  commenced  the  race  have 
fallen  by  the  wayside,  until  to-day  he  stands  alone,  the  sole 
survivor  of  the  number,  who,  as  directors,  officers,  and  clerks, 
were  connected  with  the  management  or  detail  of  the  Bank's 
business,  when  he  entered  its  service."  With  pride  it  was 
also  recorded  that  eighteen  gentlemen  had  graduated  from 
the  Bank  to  positions  of  trust  and  honor,  four  to  become 


178  The  Philadelphia  National  Bank 

bank  presidents,  eight  bank  cashiers,  and  the  others  to  respon- 
sible positions  outside  the  banking  fraternity.  The  minute 
added  that  "the  members  of  the  present  force  of  the  Bank 
look  up  to  the  President  as  to  a  father  for  advice  and  en- 
couragement, never  failing  to  receive  considerate  and  kind 
treatment."  Extending  to  him  their  hearty  congratulations, 
with  the  hope  that  the  Bank  may  for  many  years  enjoy  the 
benefit  of  his  mature  judgment  and  ripe  experience,  the  docu- 
ment was  suitably  engrossed,  signed  by  the  directors,  and 
transmitted  to  the  president. 

In  June,  1889,  occurred  the  appalling  calamity  of  the 
Johnstown  flood,  and  an  expression  of  sympathy  was  trans- 
mitted to  the  correspondent  there,  the  First  National  Bank 
of  Johnstown,  and  $1,000  was  contributed  to  the  relief  fund. 

The  business  w^orld  had  again  been  moving  financially 
at  too  rapid  a  gait,  and  there  came  another  crisis  in  1890. 
This  culminated  chiefly  abroad,  but  its  effects  were  sorely 
felt  in  the  United  States.  A  wild  speculation  in  mines  and 
industrial  promotions  had  been  pushed  under  English  auspices 
in  the  Argentine,  and  in  November  it  collapsed,  bringing 
down  in  the  wreck  of  credit  the  great  house  of  the  Barings 
in  London,  which  suspended  on  the  loth,  causing  a  widespread 
and  lasting  financial  depression.  The  banks  of  New  York 
found  it  necessary  again  to  resort  to  the  issue  of  loan  certifi- 
cates on  November  14,  1890,  and  the  example  was  followed 
in  Philadelphia.  A  year  or  more  elapsed  before  the  opera- 
tions of  the  financial  syndicate  which  undertook  the  arrange- 
ment of  the  affairs  of  the  Barings  had  restored  confidence. 
Upon  the  recovery,  there  came  a  great  speculation  in  anthracite 
coal  properties,  based  upon  the  combination  plans  of  President 
McLeod  of  the  Reading  Railroad,  beginning  in  February, 
1892,  and  continuing  for  a  year,  when  the  legal  and  other 
opposition  engendered,  and  the  stock  market  inflation  that 


Various  Financial  Panics  179 

had  been  produced,  resulted  in  a  collapse,  the  Reading  Com- 
panies suspending  and  going  into  a  receivership  in  February, 
1893.  Again  the  Philadelphia  National  Bank  was  subjected 
to  a  serious  strain,  and  again  it  was  skilfully  guided,  as  often 
before,  through  the  period  of  peril. 

For  some  time  aftenvard  all  banking  was  fraught  with 
most  serious  and  unusual  difficulties,  causing  constant  financial 
disturbances,  resulting  in  the  hoarding  of  m.oney  and  periods 
of  the  greatest  scarcity  of  currency.  This  arose  from  the 
spreading  over  the  country  of  the  silver  craze,  developed  in 
the  demand  for  unlimited  silver  coinage  at  the  ratio  of  sixteen 
to  one.  The  operation  of  the  Bland  and  other  coinage  acts 
of  Congress  had  been  filling  the  Treasury  with  enormous 
amounts  of  silver  bullion,  coined  into  silver  dollars,  which 
could  not  be  forced  into  circulation,  and  upon  which  silver 
notes  were  issued,  forming  a  very  large  part  of  the  circulating 
medium.  Month  after  month,  under  the  operation  of  law, 
the  Treasury  bought  and  coined  silver,  while  the  excessive 
production  had  gradually  decreased  its  market  value.  The 
troubles  thus  engendered  produced  such  derangement  that 
in  1896  another  panic  came,  with  a  resort  to  loan  certificates, 
and  the  country  both  politically  and  financially  was  in  great 
straits.  The  Bank  was  well  managed,  its  dividends  main- 
tained, and  its  surplus  increased,  while  its  strong  influence 
was  as  constantly  used  to  produce  more  healthy  public  opinion 
and  a  better  financial  system.  The  sound  money  battle  was 
fought  and  won  in  the  presidential  election  of  1896,  and  sub- 
sequently the  repeal  of  the  silver  coinage  laws  made  an  im- 
provement, which  gave  great  hopefulness. 

While  these  momentous  events  were  transpiring,  the  Bank 
was  under  the  skilful  guidance  of  President  Comegys,  but 
there  were  changes  in  the  office  of  cashier.  James  W.  Torrey, 
the  cashier,  died,  much  to  the  general  regret,  upon  ]March 


i8o  The  Philadelphia  National  Bank 

13,  1893,  and  the  board  recorded  a  most  feeling  minute  in 
memory  of  his  twenty-one  years  of  service,  the  last  ten  years 
being  as  cashier.  He  died  in  early  manhood,  at  the  age  of 
thirty-eight,  having  for  over  a  year  struggled  bravely  and 
hopefully  with  the  malignant  and  painful  disorder  which  ended 
his  life.  Mr.  Horace  Hill,  who  was  Mr.  Torrey's  assistant, 
resigned  January  11,  1894,  severing  a  connection  with  the 
Bank  which  had  existed  for  thirty-nine  years.  Mr.  Levi  L. 
Rue,  who  had  been  elected  assistant  cashier  April  13,  1893, 
after  Mr.  Torrey's  death,  was  upon  November  i,  1894,  elected 
cashier  of  the  Philadelphia  National  Bank. 

Levi  L.  Rue  was  born  in  Philadelphia,  July  14,  i860,  and 
received  his  education  in  the  public  schools.  In  1878  he  was 
desirous  of  entering  business,  but  receiving  no  encouragement 
from  his  father,  who  wished  him  to  take  a  college  course,  pre- 
paratory to  studying  law,  he  sought  a  position  for  himself. 
Thinking  he  would  like  to  enter  a  bank,  he  visited  several 
financial  institutions,  and  in  one  of  them  was  offered  an  imme- 
diate position.  This,  however,  he  did  not  accept,  but  after- 
wards called  at  the  Philadelphia  National  Bank,  and  was 
presented  to  the  vice-president,  Mr.  B.  B.  Comegys,  who 
promised  him  a  position  if  he  would  study  shorthand,  w^hich  he 
did  in  a  very  short  time,  and  on  December  5th,  the  minutes 
record  "the  employment  of  a  lad  on  trial  by  the  name  of 
Levi  L.  Rue."  From  that  time  on  he  passed  through  the 
various  departments  and  grades  of  the  bank  until  he  was 
appointed  receiving  teller,  which  position  he  retained  until 
April  13,  1893,  when  he  was  appointed  assistant  cashier,  and 
on  November  i,  1894,  cashier.  On  October  28,  1897,  he 
was  made  a  director, — the  first  cashier  elected,  while  in 
service,  to  membership  in  the  board.  On  April  5,  1900,  he 
was  elected  second  vice-president,  which  position,  together 
with  that  of  cashier,  he  now  holds. 


Mr.  Comegys'  Closing  Years 


I5l 


MR.  COMEGYS'  CLOSING  YEx\RS 

The  semi-centenary  of  Mr.  Comegys'  connection  with  the 
Philadelphia  National  Bank  came  upon  May  ii,  1898.  Upon 
this  occasion  the  directors  marked  the  event  by  giving  the 
venerable  president  a  dinner  at  the  Hotel  Bellevue.  The 
invitation  was  transmitted  upon  April  27th.  It  referred  to 
the  completion  of  his  half-century  of  service,  to  the  growth 
of  the  bank  to  high  rank  among  the  financial  institutions  of 
Philadelphia,  and  added  that  "the  same  qualities  which  have 
contributed  to  its  success  have  placed  you  personally  in  the 
front  rank  of  the  citizens  of  Philadelphia,  and  have  com- 
manded for  you  the  high  esteem  and  regard  of  the  entire 
community."  This  invitation  was  signed  by  his  twelve  col- 
leagues in  the  board,  Augustus  Heaton,  J.  L.  Erringer,  N. 
Parker  Shortridge,  Richard  Ashhurst,  Lincoln  Godfrey,  John 
H.  Converse,  George  Wood,  Lawrence  Johnson,  Alfred  C. 
Harrison,  James  M.  Duane,  Frank  Thomson,  and  Levi  L. 
Rue.  At  the  dinner  the  two  Bank  statements  were  con- 
trasted, 1848  when  he  began  and  1898.  In  1848  the  Bank 
had  $1,150,000  capital,  $262,813  surplus  and  profits,  and 
$4,060,336  aggregate  assets.  In  1898  the  capital  was  $1,500,- 
000,  the  surplus  and  profits  $1,300,746,  and  the  assets  $19,- 

455.745- 

Mr.   Comegys  made  the  occasion  memorable  by  giving 

his  reminiscences  of  the  half-century,  reading  a  most  interest- 
ing paper,  which  has  been  the  foundation  of  much  that  is 
written  in  this  history  of  the  Bank.  He  said  he  had  been 
elected  a  clerk  on  May  11,  1848,  and  at  once  entered  upon 
his  duties  as  an  assistant  to  the  general-ledger  bookkeeper. 
A  political  quarrel  between  the  cashier  and  one  of  the  book- 
keepers, which  resulted  in  the  latter's  resignation,  caused  the 
vacancy  he  was  chosen  to  fill.     Within  a  week  the  general- 


i82  The  Philadelphia  National  Bank 

ledger  bookkeeper  died,  the  discount  clerk  was  appointed  to 
his  place,  and  Mr.  Comegys  was  made  discount  clerk.  The 
new  general-ledger  bookkeeper  proving  incompetent,  the 
foreign  note  clerk  was  appointed  to  the  position,  and  Mr. 
Comegys  made  foreign  note  clerk.  Then  the  cashier  became 
involved,  resigning  in  1851,  Mr.  Comegys  was  made  cashier, 
and  thereafter  he  and  the  Bank  became  almost  synonymous. 

He  gave  a  short  history  of  what  he  regarded  as  one  of  the 
most  influential  means  of  extending  the  business  and  useful- 
ness of  the  Bank  through  the  change  in  the  banking  house 
in  1892.  The  front  of  the  building  on  Chestnut  Street  had 
been  previously  occupied  by  various  city  offices,  the  banking 
room  being  at  the  rear.  These  offices  were  withdrawn  in 
1892,  and  removed  to  the  City  Hall,  and  it  was  determined 
to  remodel  the  Bank  building,  the  work  being  planned  and 
carried  out  by  a  committee  of  directors,  Messrs.  N.  Parker 
Shortridge,  Lincoln  Godfrey,  and  Alfred  M.  Collins.  The 
house  was  entirely  reconstructed,  and  the  Bank  brought  to 
the  Chestnut  Street  front,  which  was  first  occupied  November 
19,  1892;  and  there  were  further  improvements  and  enlarge- 
ments made  necessary  by  the  increasing  business,  in  the  summer 
of  1895. 

He  described  many  banking  methods  and  systems  for 
increased  safety  and  convenience  first  introduced  in  the  Phila- 
delphia Bank,  which  had  been  copied  and  generally  adopted 
elsewhere,  and  expressed  gratification  that,  with  one  very 
slight  exception,  there  had  been  no  defalcation  in  the  Bank 
for  nearly  fifty  years.  During  the  half-century  $9,000,000 
had  been  paid  in  dividends,  a  larger  sum  than  had  been  dis- 
bursed by  any  other  bank  in  the  city,  being  621  per  cent,  of 
the  capital,  and  a  yearly  average  of  12J  per  cent.,  and  since 
its  organization  in  1803  the  dividends  had  annually  averaged 
9^  per  cent. 


Mr.  Comegys'  Closing  Years  183 

Mr.  Comegys  thus  enunciated  his  broad  ideas  of  the 
science  of  banking:  "It  is  not  the  chief  end  of  the  individual 
man  to  make  money  and  accumulate  wealth;  so,  likewise,  a 
bank  is  created  and  sustained,  not  merely  for  the  purpose 
of  making  money  and  paying  large  dividends  to  the  owners 
of  its  shares.  It  is  eminently  proper  that  a  merchant,  manu- 
facturer, mechanic,  railroad  manager  or  farmer,  shall  conduct 
his  business  on  high  principles,  dealing  justly  with  his  com- 
petitors, taking  no  unfair  advantage  of  the  ignorance  of  others, 
requiring  faithful  service  and  giving  just  remunerations;  and 
it  is  also  the  office  of  a  well-managed  bank  so  to  administer 
its  affairs  with  reference  to  the  well-being  of  others,  that  it 
shall  always  be  ready  to  aid,  within  proper  limits,  legitimate 
enterprises  for  the  public  good;  not  overworking  or  under- 
paying its  employees,  nor  retaining  in  its  service  persons  of 
unworthy  character;  but  holding  before  the  community  in 
which  it  is  located  a  model  Bank  in  all  its  features.  The 
community  has  a  right  to  claim  this  of  its  citizens,  and  espe- 
cially has  it  a  right  to  claim  it  of  banks  and  other  financial 
institutions;  for  all  the  money  in  the  country,  excepting  what 
is  in  the  Treasury  of  the  United  States,  or  in  the  pockets 
of  the  people,  is  in  the  custody  of  Banks,  Trust  Companies, 
or  Bankers,  by  whatever  name  they  may  be  called,  and  it 
is  of  the  utmost  importance  that  the  business  of  such  institu- 
tions shall  be  conducted  by  men  of  high  personal  character." 

In  connection  with  the  operations  of  the  Bank  itself,  at 
the  same  time,  he  referred  to  public  services  rendered,  and 
aid  extended  to  the  Government  in  various  ways,  and  to  business 
interests  having  no  direct  connection  with  the  Bank;  and  thus 
continued:  "We  have  never  been  behind  our  neighbors  in 
matters  of  great  public  interest.  We  have  provided  an  ade- 
quate pension  fund  for  superannuated  clerks;  and  have  grad- 
uated from  our  staff  of  clerks  twenty  persons  to  high  positions 


i84  The  Philadelphia  National  Bank 

in  our  own  and  other  institutions,  fifteen  of  whom  have  been 
bank  officials,  three  officers  of  large  corporations,  and  one  has 
entered  the  Christian  ministry.  The  Philadelphia  Bank  has 
been  especially  liberal  to  those  faithful  to  its  interests,  having 
a  system  of  graduated  vacations,  regulated  by  the  length  of 
service;  and  in  numerous  instances  has  granted  a  more  ex- 
tended leave  of  absence  as  a  recognition  of  special  fidelity." 
After  referring  to  various  financial  panics,  he  added  that  "the 
management  of  this  Bank,  during  these  most  trying  periods, 
in  supplying  our  dealers  with  currency,  and  in  remitting  to 
our  correspondents,  and  to  many  others  who  committed  busi- 
ness to  us  which  had  been  diverted  from  its  regular  course, 
currency  or  New  York  exchange,  at  an  expense  of  many  thou- 
sands of  dollars  to  us,  was  so  wise  and  liberal,  as  to  give  entire 
satisfaction  to  all  parties  concerned,  and  contribute  largely 
to  the  popularity  of  the  Bank.  I  speak  with  entire  freedom 
from  self-praise,  because,  during  the  hottest  of  this  period,  I 
was  absent  from  home." 

The  Philadelphia  Bank,  in  1896,  when  it  became  necessary 
to  sustain  the  Government  sound  money  policy  by  providing 
the  Treasury  with  ample  gold,  subscribed  Si, 000,000  United 
States  loan,  the  record  tersely  reciting  "said  bonds  to  be  paid 
for  in  gold."  Again,  in  April,  1898,  when  the  Spanish  war 
was  coming  on,  the  board  transmitted  to  Congress  a  message 
signed  by  the  officers  and  directors,  imploring  that  body  to 
sustain  President  McKinley  "in  his  conduct  of  our  unfortu- 
nate complications  with  Spain,  and  permit  him  to  carry  out 
what  we  believe  will  be  a  successful  issue  of  his  wise  and  well 
considered  policy."  When  the  Spanish  war  came,  the  Bank 
in  June,  1898,  promptly  subscribed  $10,000,000  to  the  Govern- 
ment war  loan  of  $200,000,000.  The  connection  of  the  Bank 
with  the  Pennsylvania  Railroad  had  been  marked  by  the  en- 
trance of  its  president,  Frank  Thomson,  to  the  board  in  April, 


HARRY    T.    KESER, 
Assistant  Cashier. 


Mr.  Comegys'  Closing  Years  185 

1897.  Mr.  Thomson  died  in  June,  1899,  ^.nd  the  new  presi- 
dent of  the  Pennsylvania  Railroad,  Alexander  J.  Cassatt,  suc- 
ceeded him  as  a  director.  In  March,  1900,  the  oldest  director, 
Augustus  Heaton,  who  had  served  for  forty  years,  died,  and 
the  board  adopted  an  appropriate  minute. 

President  Comegys  was  advancing  in  years,  and  while  his 
zeal  and  devotion  were  undiminished,  he  needed  rest  and  asked 
for  a  leave  of  absence,  which  he  availed  of  to  make  an  ex- 
tended tour  abroad.  At  Mr.  Comegys'  suggestion,  the  office 
of  vice-president  was  revived  and  upon  June  5,  1899,  Lincoln 
Godfrey  was  elected  vice-president  of  the  Bank,  which  office 
he  still  holds.  Mr.  Godfrey  was  born  in  Philadelphia  May 
17,  1850,  and  was  the  son  of  Benjamin  G.  Godfrey,  long  a 
director  of  the  Philadelphia  Bank.  He  entered  his  father's 
business  house  at  the  age  of  sLxteen,  and  was  admitted  a 
partner  in  1872,  subsequently  withdrawing  to  assist  in  form- 
ing the  firm  of  William  Simpson,  Sons  &  Co.,  of  which  he 
is  now  the  senior  partner.  In  January,  1880,  he  was  elected 
a  director  of  the  Philadelphia  Bank.  He  is  president  of 
the  Eddystone  Manufacturing  Company,  a  director  of  the 
Pennsylvania  Railroad,  of  the  Philadelphia  Trust,  Safe  Deposit 
and  Insurance  Company,  of  the  Insurance  Company  of  North 
America,  and  of  other  institutions. 

In  March,  1900,  the  career  of  the  great  banker,  Benjamin 
B.  Comegys,  closed.  After  a  brief  illness,  he  died  March  29, 
1900,  in  his  eighty-first  year,  having  served  the  Philadelphia 
Bank  for  nearly  fifty- two  years.  His  death  caused  profound 
sorrow  in  Philadelphia,  and  general  regret  was  expressed  in 
banking  circles  throughout  the  country,  he  being  regarded 
as  one  of  the  great  leaders  in  finance.  In  recording  the  death 
of  its  venerable  president,  the  board  announced  that  ''his 
personality  has  been  synonymous  with  the  standing  of  the 
Bank,  and  in  the  estimation  of  the  business  community,  Mr. 


i86  The  Philadelphia  National  Bank 

Comeg}^s  and  the  Philadelphia  National  Bank  were  insepa- 
rably associated.  His  loyalty  to  its  interests  was  complete  and 
unwavering,  his  pride  in  its  growth  and  influence  was  intense 
and  conspicuous.  By  his  sterling  character,  he  commanded 
the  general  respect  of  the  community.  His  uniform  courtesy 
to  all ;  his  sympathy  for  those  who  needed  counsel  and  encour- 
agement ;  and  his  sincere  interest  in  every  good  work,  endeared 
him  to  all  with  whom  he  had  business  relations.  He  had  a 
breadth  of  view  born  of  sound  judgment  and  ripe  experience. 
The  estimation  with  which  he  was  held  in  financial  circles 
testified  to  the  sincere  regard  and  respect  he  everywhere  in- 
spired. The  influence  of  his  upright  Christian  life  and  ex- 
ample had  no  small  effect  in  maintaining  a  high  standard  of 
character  in  all  the  departments  of  service  of  the  Bank.  The 
Board  recognizes  that  much  of  the  prosperity  which  the  Bank 
has  enjoyed  has  been  due  to  his  able  and  conservative  man- 
agement." 

PRESIDENT  SHORTRIDGE  HIS  SUCCESSOR 

N.  Parker  Shortridge,  who  had  been  a  director  since  1867, 
was  elected  president  of  the  Philadelphia  National  Bank,  April 
2,  1900,  and  the  present  official  organization  of  the  Bank  was 
then  formed,  Mr.  Godfrey  continuing  as  first  vice-president, 
and  Mr.  Rue,  the  cashier,  being  elected  the  second  vice-pres- 
ident on  April  5  th. 

Mr.  Shortridge  was  born  at  Portsmouth,  New  Hampshire, 
November  28,  1829,  his  father  having  been  a  merchant  of  that 
city.  At  the  age  of  sixteen  years  he  came  to  Philadelphia, 
and  entered  the  dry-goods  commission  house  of  David  S. 
Brown  &  Co.  Here  he  continued  for  twelve  years,  when 
he  became  a  partner  of  George  F.  Peabody  &  Co.,  engaged 
in  similar  business,  and  in  1864  he  entered  the  firm  that  sue- 


President  Shortridge  His  Successor        187 

ceeded  it,  Harris,  Shortridge  &  Co.,  which  in  1867  became 
Shortridge,  Borden  &  Co.  He  was  at  this  time  elected  a 
director  of  the  Philadelphia  National  Bank,  and  in  1874  was 
chosen  a  director  of  the  Pennsylvania  Railroad,  of  which  he  has 
been  for  many  years  chairman  of  the  Finance  Committee. 
He  is  also  president  of  the  Philadelphia  and  Erie  Railroad. 

The  Philadelphia  National  Bank  had  received  a  consid- 
erable impetus  in  its  business  through  the  increasing  activities 
following  the  Spanish  war,  and  the  period  of  high  industrial 
prosperity  which  the  country  afterward  enjoyed.  In  ^lay, 
1900,  the  City  National  Bank,  one  of  the  strongest  of  the 
smaller  banks  of  the  city,  was  merged  with  the  Philadelphia 
Bank.  The  City  National  Bank,  of  which  Josiah  Kisterbock, 
Jr.,  was  the  president,  had  $400,000  capital  and  a  large  surplus, 
and  in  the  subsequent  liquidation  of  its  affairs  its  stockholders 
received  for  each  share  of  850  par  a  distribution  of  $105.77 
in  cash.  The  Philadelphia  National  Bank  had  large  accessions 
to  its  business  and  deposits  during  the  remainder  of  the  year 
1900,  so  that  in  December  its  aggregate  assets  had  increased 
to  $31,626,029.  It  had  $20,310,445  loans,  $1,647,105  due 
from  banks,  and  $9,678,479  cash  and  reserve.  Its  deposits 
were  $27,779,965,  its  circulation  $697,550,  surplus  and  profits 
$1,658,514,  and  capital  $1,500,000. 

The  constantly  enlarging  business  of  the  Bank  required 
that  the  office  of  assistant  cashier  should  be  again  revived, 
and  on  April  26,  1901,  Harry  J.  Keser  was  appointed  to  that 
position.  Mr.  Keser  was  born  in  Philadelphia,  March  30, 
1873,  and  was  educated  at  the  public  schools  and  Girard 
College.  Upon  graduation  from  the  latter,  he  entered  the 
service  of  the  Philadelphia  National  Bank,  June  11,  1888, 
and  was  advanced  step  by  step  to  the  post  of  assistant  cashier, 
which  he  now  fills. 

The  business  of  the  Bank  continued  to  expand,  and  in  the 


i88  The  Philadelphia  National  Bank 

statement  of  July  i,  1903,  the  aggregate  assets  had  increased 
to  $38,343,032.  It  had  $21,312,517  loans  and  investments, 
$3,924,547  due  from  banks,  $12,505,968  cash  and  reserve, 
and  the  banking  house  was  valued  at  $600,000.  The  deposits 
were  $34,590,869,  the  circulation  $50,000,  surplus  and  net 
profits  $2,202,163,  ^^d  capital  $1,500,000. 

The  Clerks'  Pension  Fund  of  the  Philadelphia  National 
Bank  has  steadily  increased  to  an  invested  capital,  at  present, 
of  $112,000,  the  accounts  being  kept  entirely  apart  from  those 
of  the  Bank,  as  a  special  trust.  It  has,  during  its  existence, 
supported  twenty  beneficiaries,  the  aggregate  disbursements 
of  income  to  them  having  been  $80,000,  and  there  are  now 
six  beneficiaries  receiving  pensions. 

During  the  century  of  existence,  the  Philadelphia  Bank 
and  the  Philadelphia  National  Bank  have  paid  to  the  stock- 
holders nine  hundred  and  thirty-six  (936)  per  cent,  in  dividends, 
amounting  to  $14,104,372  in  cash,  being  nearly  nine  and  one- 
half  times  the  present  capital  of  the  Bank.  There  are  eight 
hundred  and  ten  (810)  stockholders  of  the  Bank.  These  are 
299  men,  334  women,  150  trust  estates,  and  27  corporations. 
During  the  century,  the  Bank  has  had  one  hundred  and  ninety- 
one  (191)  directors,  including  many  of  the  most  prominent 
citizens  and  business  men  of  Philadelphia.  The  staff  of  the 
Bank  numbers  ninety  persons. 

These  pages  have  told  the  story  of  the  Philadelphia  Bank, 
of  its  fortunes,  its  career,  and  the  close  and  influential  con- 
nection it  has  had  with  the  great  events  that  have  made  up  the 
financial  history  of  the  nation,  State,  and  city.  Always  loyal, 
always  helpful,  it  has  grown  with  the  vast  growth  of  the  country 
and  of  the  community  it  has  served,  and  begins  its  second 
century,  September  19,  1903,  with  the  best  wishes  of  its  friends 
and  patrons,  and  the  entire  confidence  of  the  city  of  Philadel- 
phia, whose  honored  name  it  bears. 


IX 
APPENDIX 

1803-1903 


IX 
APPENDIX 

1803-1903 

Bank  Statements,  i8i6-igoj — Organization,  i8oj-igoj — 
Officers  During  the  Century — Directors — Dividends — 
Biographies  of  the  Directors,  igoj. 

THE  following  pages  contain  the  first  statement  issued 
by  the  Philadelphia  Bank,  November  4,  1816,  and 
the  statement  of  the  Philadelphia  National  Bank  of 
July  I,  1903;  the  organization  of  the  Bank  in  1803  and  1903; 
a  list  of  the  officers  during  the  century,  also  of  the  directors, 
and  of  the  dividends  paid;  and  biographies  of  the  directors, 
members  of  the  board  for  1903. 


191 


192  Appendix 


THE  PHILADELPHIA  BANK 

THE  FIRST  STATEMENT 

November  4,  1 8 1 6 

Resources 

Notes  Discounted  at  Philadelphia, $1,435,800 

Notes  Discounted  at  Branches, 936,431     $2,372,231 

Stock  Bought  on  Account  of  Contingent  Fund, 98,000 

Banking  House  and  Adjoining  Lot, 54,200 

Loan  to  State  of  Pennsylvania, 50,000 

Loan  to  City  of  Philadelphia, 59, 000 

Due  from  Pennsylvania  Bank, $87,500 

"  Commercial  Bank, 18,300 

"  Mechanics'  Bank, 72,600 

"          Other  Banks, 12,200  190,600 

Real  Estate  at  Branches  and  Taken  for  Debt, 21,300 

Bridge  and  Turnpike  Stocks, 3,000 

Charter  (Cost), 145,126 

Expenses  since  Last  Dividend, 4,648 

Cash:  viz.  Specie,  $228,438 

Notes  of  Other  Banks, 103,917  332,355 

$3.330,4<5o 


Liabilities 

Capital  Stock, $1,800,000 

Notes  in  Circulation, 456,013 

Due  to  Bank  of  North  America, $12,000 

"        Farmers'  and  Mechanics'  Bank, 72,800 

"        Merchants'  Bank,  New  York, 49,000 

"        Other  Banks, 18,300  152,100 

"        State  of  Pennsylvania, 22,500 

Dividends  Unpaid, 12,402 

Discounts  since  Last  Dividend, 19,824 

Due  to  Individual  Depositors, 671,737 

Sinking  Fund  to  Liquidate  Cost  of  Charter  and  Reservation 

as  Sinking  Fund, 195,884 

$3»330,46o 


Appendix  193 


THE  PHILADELPHIA  NATIONAL  BANK 

THE  LATEST  STATEMENT 

July  I,   1903 


Resources 

Loans,  Discounts,  and  Investments, $21,312,517 

Banking  House, 600,000 

Due  from  Banks,  not  Reserve  Agents, 3,924,547 

Exchanges  for  Clearing  House, $2,153,205 

Cash   and   Reserve, 10,352,763  12,505,968 

$38»343.032 


Liabilities 

Capital  Stock, $1,500,000 

Surplus  Fund, 2,000,000 

Net  Profits, 202,163 

Circulation, 50,000 

Deposits — Individual, $22,919,521 

Bank, 11,671,348  34,590,869 

$38,343,032 


13 


194 


Appendix 


THE  PHILADELPHIA  BANK 

1803 

ORGANIZATION 

President, George  Clymer. 

Cashier, James  Todd. 


Directors 


George  Clymer 
John  Welsh 
John  Gardiner,  Jr. 
Samuel  Meeker 
Elisha  Kane 
Jacob  Sperry 
Matthew  Lawler 
Louis  D.  Carpentier 


William  Guier 
Joseph  D.  Drinker 
John  Bohlen 
William  Haslett 
Jacob  Shoemaker 
Abraham  M.  Garrigues 
Alexander  Cranston 
Joseph  Clark 


First  Teller, Quintin  Campbell 

Second  Teller, Moses  Musgrave 

First  Bookkeeper, E.  Salomon 

Second  Bookkeeper, Samuel  Field 

Discount  Clerk, Thomas  F.  Gamble 

Note  and  Transfer  Clerk, .-John  Neal 

Notary, Nicholas  Diehl 

Runner, Francis  G.  Deimling 

Watchmen, Joseph  Carroll,  Robert  Bayne 


Appendix 


195 


THE  PHILADELPHIA  NATIONAL  BANK 

1903 
ORGANIZATION 

President, X.  Parker  Shortridge 

First  Vice-president, Lincoln  Godfrey 

Second  Vice-president  and  Cashier, Levi  L.  Rue 

Assistant  Cashier, Harry  J.  Keser 


Directors 


N.  Parker  Shortridge 
J.  Livingston  Erringer 
Richard  Ashhurst 
Lincoln  Godfrey 
John  H.  Converse 
George  Wood 
LA^^'RENCE  Johnson 
Alfred  C.  H.arrison 


Le\t  L.  Rite 
George  H.  Frazier 
Alexander  J.  Cassatt 
Percr'al  Roberts,  Jr. 
George  H.  McFadden 
William  Potter 
Edward  T.  Stotesbury 
James  F.  Hope 


Solicitor 
Angelo  T.  Freedley 


Auditor 

William  Sherwood,*  1864 
Assistant,  William  N.  Emory,  : 


Loan  Department 

Horace  Fortescue,  1893 
Richard  C.  Stephens,  Jr., 1884  David  W.  Stewart,. 


Paying  Tellers'  Department 
Samuel  H.  Mein,  1871 

Hugh  Dunlap, 1884  James  A.  Duffy, 

Samuel  L.  Turner, 1899  WiLLi.\ii  W.  Allen,  Jr.; 

*  The  year  is  given  when  each  person  began  service  in  the  Bank. 


.1900 


196  Appendix 


Receiving  Tellers'  Department 

Frank  P.  Stephens,  iSSi  Josiah  B.  Bartow,  1884 

Edwin  K.  Steel, 1S69  Stephen  E.  Ruth, ..iSgo 

Ernest  Choate, 1S85  John  R.  Naisby, 1902 

James  C.  Torrey, 1895  E.  Wallace  Miller, 1902 

Charles  S.  Emory, 1895  James  Hassard, 1902 

Harold  I.  Taylor, 1900  Walter  S.  Heins, 1902 

Alfred  M.  Walton, 1900  Charles  A.  Faloon, 1903 

Eugene  A.  Skilton, 1900  Percy  N.  Demuth, 1903 

James  A.  Carrigan, 1900  John  R.  Rue, 1903 

Campbell  M.  Carr, 1901  Charles  J.  B.  Dixon, 1903 

Nelson  H.  Clark, 1902  Guy  W.  Sturdivant, 1903 

Wilfred  M.   Powell,. 1902  W^illiam  E.  Penington, 1903 

Russell  Watson, 1902  L.  Parker  Miller, 1903 

Francis  W.  Westwood,  1903 


General  Ledger  Bookkeepers 

John  G.  Roberts,  1899 

Arthur  N.  Starin, 1899  Matthew  B.  Duffy, 1899 

Charles  H.  Voorhis, 1901  L.  Thomas  Trook, 1902 

Augustus  M.  Wessels, 1901  Franklin  P.  Rouleau, 1902 


Individual  Ledger  Bookkeepers 

Howard  K.  Dunn,  1876 

William  Watters, 1876  Alfred  Choate, 1886 

William  W.  Hughes, 1900  Robert  W.  Knight, 1901 

Daniel  Porter,  Jr., 1900  Ira  S.  Mayer, 1901 


Foreign  Collection  Department 

Frederick  C.  Staff,  1889 

H.  St.  Clair  Ash, 1899  Jacob  M.  Tryon, 1901 

Hermann  V.  Weinmann,  1903 


Runners'  Department 

Ernst  Schw.a.cke,  1874 

William  H.  Pettit, 1900  Thomas  Marshall, 1874 

Samuel  Gibson    Jr., 18S6  George  E.  Tucker, 1901 

William  Goodall, 1SS7  Frank  W.  Durell, 1902 

J.  D.  Earl  Allen,  1902 


Appendix  197 


Correspondence  Department 

JOHX  K.  Turner,  1899 

Charles  N.  Broadbext, 1900  CAL^^^r  C.  Rush, 1901 

Richard  D.  Bateman, 1900  Clayton  J.  Larash, 1901 

Arthur  G.  Moore, 1900  J.  Byron  Deacon, 1901 

Lewis  Walker,  1903 


Analysis  Department 

James  B.  Ruth,  1899 

John  R.  Westwood,  Jr., 1901  O.  Hov.'ard  Wolfe, 1899 

Linwood  J.  HANNUii,  1902 

Superintendent  of  Building 

Joseph  Grieves,  1890 

Stenographers 
Sara  H.  Rodgers, 1900  Florence  E.   Grafftey, 1902 

Telephone  Exchange 

Mary  V.  Neville,  igoo 

Messengers 
James  Blackburn, 1891  William  P.  .Allan, 1900 

Day  Watchmen 
Michael  A.  Sullivan, 1901  John  J.  Thompson, 1903 

Night  Watchmen 
George  Ettinger, 1897  J.\mes  Ewing, 1903 

Page 

Ernest  A.  Jackson,  1900 


198  Appendix 


OFFICERS  DURING  THE  CENTURY 


Presidents 

George  Clymer, August  18,  1803,  till  January  23,  1813 

David  Lenox, January  28,  1813,  till  December  31,  1818 

John  Read, December  31,  1818,  till  February  2,  1S47 

Samuel  F.  Smith, February  2,  1847,  till  January  29,  1852 

Thomas  Robins, January  29,  1852,  till  January  16,  1879 

Benjamin  B.  Comegys, January  16,  1879,  till  March  29,  1900 

N.  Parker  Shortridge, April  2,  1900 


Vice-presidents 

Benjamin  B.   Comegys, January       10,  1867,  till  January     16,  1879 

Lincoln  Godfrey, June  5,  1899 

Levi  L.  Rue, April  5,  1900 

Cashiers 

James  Todd, August        17,  1803,  till  November     7,  1805 

QuiNTiN  Campbell, November    7,  1805,  till  November  17,  1835 

John  B.  Trevor, November  30,  1S35,  till  August        28,  1851 

Benjamin  B.  Comegys, August        28,  1851,  till  January      15,  1872 

Benjamin  F.  Chatham, January       15,  1872,  till  November  26,  1879 

James  M.  Gregg, December  11,  1879,  till  November  28,  1883 

James  W.  Torrey', December  13,  1883,  till  March         13,  1893 

Levi  L.  Rue, November     i,  1894 

Assistant  Cashiers 

Benjamin  F.  Chatecam, January       10,  1867,  till  January  15,  1872 

Benjamin  B.  Comegys,  Jr., January        4,  1883,  till  November  20,  1884 

Horace  Hill, November    3,  1892,  till  January  11,  1S94 

Levi  L.  Rue, April            13,  1893,  till  November  i    1894 

Harry  J.  Keser, April  26,  1901 


Appendix 


199 


DIRECTORS  DURING  THE  CENTURY 

The  following  is  a  chronological  list  of  the  Bank  Directors,  those  elected  by  the 
Legislature  of  the  State  of  Pennsylvania  being  marked  *,  and  State  Directors,  who 
were  also  elected  Directors  by  the  stockholders,  being  marked  f.  The  year  of  first 
election  of  each  Director  is  given. 


THE  PHILADELPHIA  BANK 


1S03. 


1806. 
1S07. 


George  Clymer,  President  1809. 

John  Welsh 

John  Gardiner,  Jr.  1810. 

Samuel  Meeker  181 2. 

Elisha  Kane 

J.\coB  Sperry 

Matthew  Lawler 

Louis  D.  Carpentier 

WiLLi.A.ii  GuiER  18 13. 

Joseph  D.  Drinker 

John  Bohlen 

WiLLiAii  Kaslett  18 14. 

Jacob  Shoemaker 

Abraham  M.  G.\rrigues 

IsR-AEL  Israel 

Joseph  Clark. 
*Michael  Bright 
*JoHN  Jackson 
fDAviD  Jackson  1815. 

tSAMUEL   CARSWELL 

*LEW^s  Rush 

*WlLLLAM   McFaDDEN. 

Augustine  Bosquet 

John  Warder  1816. 

♦Henry  Orth 
*HuGH  Henry. 

♦Robert  Johnson  181 7. 

fTHOMAS  Ross. 

Caspar  W.  Morris 

Thomas  Callender  1818. 

*Adolphe  Eringhaus 
*Theophilus  Harris 
fSAMUEL  F.  Smith. 
♦Robert  Harris,  Jr. 
fTHOMAS  W.  Fr-ancis  1819. 

♦Samuel  Hodgdon. 


♦John  W.  Faussett 
♦David  Atcheson. 
♦Jacob  Holgate. 

William  Phillips 

Joseph  Lea 

Joseph  Lo\\'nes 

Matthew  L.  Bevan 
♦William  Smiley. 

David  Lenox 
♦Godfrey  Smith 
♦William  Weaver. 

Joseph  Clark,  Jr. 

John  Godfrey  Wachsmuth 

Charles  Chauncey 
♦Christopher  J.  Burckle 
♦Thomas  F.  Gordon 

fFREDERICK    RaVESIES 

♦Jacob  Houpt. 

John  Stille 

Samuel  W.  Jones 
♦Joseph  McCoy 
♦Joseph  Worrell 
♦John  Geyer. 

John  Magoffin 
♦John  Claxton 
♦Robert  A.  Caldcleugh. 

Joseph  R.  Evans 

fCHARLES    BiDDLE,    Jr. 

♦Morris  Wurts. 

Benj.amin  Stille 
♦D.A^^EL  H.  Miller 
♦John  Read 
fRoBERT  Patterson 
♦Andrew  Fisher. 

Charles  Graff 

William  Yardley 


200 


Appendix 


Directors  During  the  Century 


I8I9. 

John  M.  Price. 

1837- 

*James  McCormick 

1820. 

John  A.  Dutilh 

^Benjamin  E.  Carpenter. 

Caleb  Newbold,  Jr. 

1838. 

John  Duncan 

Edward  Twells 

♦Alexander  Cummings 

*Alexander  McCaraher 

*J.  Sidney  Jones 

*JoHN  Conrad. 

*Jesse  R.  Burden 

I82I. 

*JOHN  L.  Clark 

*G.  C.  PIowell. 

*JosEPH  Watson. 

1839. 

♦Daniel  M.  Keim 

1822. 

*MlCHAEL    RiTER 

♦David  P.  Pussier. 

*James  M.  Linnard. 

1840. 

♦W.  C.  Cochran 

1823. 

^Abraham  Okie. 

♦B.  Cooper 

1824. 

Daniel  Moore 

♦W.  H.  Spackman. 

*Levi  Ellmaker. 

1842. 

John  W.  Claghorn 

1826. 

Joshua  Longstreth. 

♦Edward  T.  Mott 

1827. 

Cyrus  Jacobs. 

♦Henry  M.  Phillips. 

1828. 

William  Worrell 

1844. 

Edwin  M.  Lewis. 

John  Cowden 

1845. 

John  Devereux. 

John  A.  Otto 

1847. 

William  S.  Boyd. 

*JoHN  M.  Barclay. 

1848. 

Samuel  Welsh. 

1829. 

*Samuel  Heintz 

1851. 

John  Yarrow 

*WiLLiAM  Boyd. 

Joseph  Swift 

1830. 

*Lewis  Ryan. 

Thomas  Robins. 

I83I. 

*Edwin  N.  Bridges 

1853- 

Daniel  B.  Hinman. 

*JOHN  B.  Trevor. 

1854. 

Albert  Worrell. 

1832. 

Aaron  Kille 

1856. 

Marshall  Hill. 

*Joseph  Plankinton 

1857- 

Lewis  R.  Ashhurst 

*Benjamin  Jones 

Frederick  Lennig 

♦Alexander  McClung 

Abraham  H.\rt 

*HuGH  Downing. 

John  Welsh,  2D. 

1833- 

*Francis  Shoemaker 

1859. 

Edward  S.  Clarke 

*Paul  S.  Brown. 

Richard  Wood 

1834. 

Lewis  Waln 

J.  Gillingham  Fell 

Joshua  C.  Oliver. 

John  P.  White. 

1835- 

Richard  Price 

i860. 

Charles  Lennig 

QuiNTiN  Campbell 

Augustus  Heaton. 

John  N.  Conyngham 

1861. 

J.  Livingston  Erringer 

Richard  D.  Wood 

James  L.  Cl.'^ghorn 

*JoEL  Cook 

Samuel  W.  DeCoursey. 

fHENRY    C.    CORBIT. 

1862. 

Henry  Preaut 

1836. 

*Daniel  M.  Broadhead 

George  Whitney 

*Lewis  M.  Troutman. 

Benjamin  G.  Godfrey. 

1837. 

*George  H.  Howell 

Appendix 


20I 


Directors  During  the  Century 
THE  PHILADELPHIA  NATIONAL  BANK 


1864. 


1866. 


1867. 


1868. 
1874. 


1875- 
1876. 


Thomas  Robins,  President  1876. 

Richard  D.  Wood  1877. 

Marshall  Hill 

Lewis  R.  Ashhurst  1880. 

J.  GiLLixGEAM  Fell  1882. 

Charles  Lennig  1883. 

Augustus  Heaton 

J.  Livingston  Erringer  1884. 

James  L.  Claghorn  1885. 

Samuel  W.  DeCoursey  18SG. 

Henry  Preaut  1887. 

George  Whitney 

Benjamin  G.  Godfrey.  1890. 

John  D.  Taylor  1891. 

James  Steel.  1S95. 

N.  Parker  Shortridge 

Edward  Y.  Townsend  1897- 

Frank  L.  Bodine 

Benjamin  B.  Comegys.  1899. 

George  W.  Mears. 

Richard  Ashhurst  1900. 

John  E.  Cope 

Charles  C.  Harrison. 

John  R.  Whitney.  1901. 

William  Brockie  1902. 


Henry  K.  Dillard. 
William  W.  Frazier,  Jr. 
Alfred  M.  Collins. 
Lincoln  Godfrey. 
Alexander  Brown. 
Edward  S.  Buckley 
George  Burnham. 
Eugene  Delano. 
John  H.  Converse. 
Henry  T.  Townsend. 
Isaac  H.  Clothier 
William  Henry  Trotter. 
George  Wood. 
Lawrence  Johnson. 
Alfred  C.  Harrison 
James  May  Duane. 
Fr.ank  Thomson 
Levi  L.  Rue. 
George  H.  Frazier 
A.  J.  Cassatt. 
Percival  Roberts,  Jr. 
George  H.  McFadden 
William  Potter. 
Edward  T.  Stotesbury. 
James  F.  Hope 


202 


Appendix 


DIVIDENDS  DURING  THE  CENTURY 


^^6  per  Cent.     114,104,372  in  Cash 


Year 

Rate 

Amount 

1804 

61% 

$66,634 

1S05 

(>h% 

84,500 

1806 

7i% 

99.631 

1807 

8% 

124,816 

1808 

8% 

126,584 

1809 

8% 

132,556 

1810 

8% 

143,220 

iSii 

4  % 

72,000 

1812 

6^% 

117,000 

1813 

8% 

144,000 

1814 

7h% 

135,000 

iSis 

7i% 

135,000 

ISI6 

7% 

126,000 

I8I7 

7% 

126,000 

I8I8 

6% 

108,000 

I8I9 

3% 

54,000 

1820 

3  % 

54,000 

1821 

4% 

72,000 

1822 

5  % 

90,000 

1823 

5  % 

90,000 

1824 

5  % 

90,000 

1825 

5  % 

90,000 

1826 

5  % 

90,000 

1827 

5% 

90,000 

1828 

4^% 

81,000 

1829 

5  % 

90,000 

1830 

5  % 

90,000 

1 83 1 

5h7o 

99,000 

1832 

6% 

108,000 

1833 

6% 

108,000 

1834 

3  % 

54,000 

1835 

6h% 

117,000 

1836 

7  % 

126,000 

1837 

6i% 

117,000 

1838 

6^% 

117,000 

1839 

7% 

118,266 

1840 

6% 

92,532 

1841 

3  % 

46,266 

1844 

7% 

80,500 

1845 

8  % 

92,000 

1846 

8  % 

92,000 

1847 

17  % 

195-500 

1848 

9  % 

103,500 

1849 

15  % 

172,500 

i8so 

14  % 

161,000 

1851 

II  % 

126,500 

1852 

II  % 

126,500 

1853 

12% 

138,000 

1854 

12  % 

138,000 

1855 

12  % 

138,000 

Year 

1856 

1857 
1858 

1859 
i860 
1861 
1862 
1863 
1864 
1865 


1866 
1867 
1868 
1869 
1870 
1871 
1872 

1873 
1874 

1875 
1876 
1877 
1878 

1879 
1880 
1881 
1882 
1883 
1884 
1885 
1886 
1887 
1888 
1889 
1890 
189 1 
1892 

1893 
1894 

1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 


Rate 

12% 

8% 

8% 

10% 

10% 

6% 

7% 
•10% 

13% 
15% 


Total,  936  per  cent.;  $14,104,372 


25%  (special) 

15% 
16% 
15% 
14% 
14% 
14% 
14% 
14% 
14% 
14% 
14% 
14% 
12% 
11% 
12% 
11% 
12% 
12% 
12% 
12% 
12% 
12% 
12% 
12% 
12% 
12% 
10% 
10% 
10% 
10% 
10% 
10% 
10% 
10% 
10% 
10% 
10% 
5%  (half-year) 


Amount 
$138,000 
140,750 
135,064 
168,660 

168,735 
101,103 
115,022 
154,865 
198,168 
225,000 

375,000 

225,000 
240,000 
225,000 
210,000 
210,000 
210,000 
210,000 
210,000 
210,000 
210,000 
210,000 
210,000 
180,000 
165,000 
180,000 
165,000 
180,000 
180,000 
180,000 
180,000 
180,000 
180,000 
180,000 
180,000 
180,000 
180,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
150,000 
75,000 


Appendix  203 

THE    PHILADELPHIA   NATIONAL  BANK 

BIOGRAPHIES  OF  THE  DIRECTORS 

1903 

N.  Parker  Shortridge,  elected  director  January  8,  1867,  and  presi- 
dent, April  2,  1900,  was  born  in  Portsmouth,  New  Hampshire,  November 
28,  1829.  His  father,  John  Hart  Shortridge,  was  a  merchant  of  Ports- 
mouth, and  his  mother,  Margaret  Tredick,  was  a  daughter  of  Captain 
Henry  Tredick,  of  Portsmouth.  His  great-grandfather  was  Captain 
Richard  Shortridge,  of  the  Second  New  Hampshire  Regiment  in  the 
Revolution,  who  served  until  July  8,  1776,  when  he  died  at  Crown  Point 
on  Lake  Champlain.  Mr.  N.  Parker  Shortridge  was  educated  at  the 
Academy,  Dover,  New  Hampshire.  Coming  to  Philadelphia,  at  the  age 
of  sixteen,  he  entered  the  counting-house  of  David  S.  Brown  &  Co., 
cotton  and  woolen  dry-goods  commission  merchants.  Here  he  continued 
for  twelve  years,  learning  all  branches  of  that  extensive  business,  and 
then,  with  George  F.  Peabody  of  that  firm,  he  established  the  new  firm 
of  George  F.  Peabody  &  Co.,  dry-goods  commission  merchants.  In 
1864  this  firm  was  succeeded  by  Harris,  Shortridge  &  Co.,  and  in  1S67 
by  Shortridge,  Borden  &  Co.  He  retired  from  active  business  in  1877, 
and  the  next  year  spent  five  months  in  travel  abroad.  He  was  very  active 
in  the  organization  of  the  American  Steamship  Co.,  and  the  Centennial 
Exhibition  of  1876  at  Philadelphia,  being  prominent  in  conducting  the 
affairs  of  the  Centennial  Board  of  Finance.  He  was  elected  a  member 
of  this  board  at  its  organization  in  1873,  ^^^  continued  actively  in  its 
management  until  the  closing  of  the  business  of  the  Exhibition,  twenty 
years  later,  and  he  was  also  a  member  of  the  committee  that  wound  up 
its  affairs.  Mr.  Shortridge  was  elected  a  director  of  the  Pennsylvania 
Railroad  in  March,  1874.  He  is  also  President  of  the  Philadelphia  and 
Erie  Railroad  Company,  president  of  the  Trenton  Delaware  Bridge 
Company,  and  director  of  the  Pennsylvania  Com.pany;  Pittsburg,  Cin- 
cinnati, Chicago  and  St.  Louis  Railroad;  Philadelphia,  Bahimore  and 
Washington  Railroad;  Northern  Central  Railway;  West  Jersey  and  Sea- 
shore Railroad,  and  many  other  corporations  subordinate  to  the  Penn- 
sylvania Railroad,  of  which  latter  company  he  is  also  chairman  of  the 
Finance  Committee.  He  is  a  trustee  of  the  Union  Trust  Company  of 
New  York  City,  and  a  member  of  its  Executive  Committee.     He  is  also 


204  Appendix 

a  director  of  the  Philadelphia  Trust,  Safe  Deposit  and  Insurance  Com- 
pany, a  manager  of  the  Western  Saving  Fund  Society,  a  manager  of  the 
Merchants'  Fund  and  an  executive  councillor  of  the  Board  of  Trade. 
Mr.  Shortridge  assisted  in  the  formation  of  the  New  England  Society 
of  Pennsylvania  and  has  served  as  a  director  and  vice-president.  For 
many  years  he  has  been  a  warden  of  the  Church  of  the  Redeemer  at  Bryn 
Mawr,  Pennsylvania,  and  on  October  i8,  1902,  he  was  elected  an  honorary 
member  of  the  New  Hampshire  Society  of  the  Cincinnati. 


J.  Livingston  Erringer,  elected  director  June  13,  1861,  is  the  oldest 
member  of  the  board  in  years  and  in  term  of  service.  He  was  born  in 
Philadelphia,  December  2,  181 5,  and  was  educated  in  the  schools  of 
Philadelphia  and  of  Plainfield,  Connecticut.  He  began  business  in  Phila- 
delphia, in  1 83 1,  as  assistant  bookkeeper  in  the  dry-goods  commission 
house  of  J.  &  M.  Brown  and  M.  D.  Lewis,  then  the  leading  firm  in 
that  line  in  the  city.  He  subsequently  was  transferred  to  the  sales  depart- 
ment at  his  own  request  and  learned  all  branches  of  the  business.  After- 
ward, with  Horatio  C.  Wood,  he  formed  the  well-known  dry-goods  com- 
mission house  of  \\'ood  &  Erringer,  continuing  until  1866,  when  he  retired 
from  business.  Mr.  Erringer  assisted  in  forming  the  Philadelphia  Trust, 
Safe  Deposit  and  Insurance  Company,  of  which  he  was  made  the  vice- 
president,  May  6,  1869,  and  was  elected  president  February  11,  1874,  and 
he  has  since  continued  at  the  head  of  that  well-known  institution.  Mr. 
Erringer  is  also  a  manager  of  the  Saving  Fund  Society  of  Germantown,  a 
director  of  the  Guarantee  Company  of  North  America,  and  a  manager 
of  the  American  Sunday  School  Union. 


Richard  Ashhurst,  elected  director  January  13,  1874,  was  the  son 
of  Lewis  R.  Ashhurst,  long  a  director  of  the  Philadelphia  Bank,  and 
was  born  in  Philadelphia,  June  28,  1833.  He  was  educated  in  various 
private  schools  and  at  James'  Academy,  and  the  University  of  Penn- 
sylvania, graduating  from  the  latter  in  1853.  In  September  of  that  year 
he  became  a  clerk  in  the  Farmers'  and  Mechanics'  Bank,  and  after  two 
years'  service  resigned  and  began  business  as  a  partner  in  the  firm  of 
Caldwell  &  Green,  produce  commission  merchants.  Retiring  in  1856, 
he  went  to  Europe,  and  remained  abroad  until  September,  1857,  when 


Appendix  205 

he  returned  to  the  United  States  and  again  entered  the  service  of  the 
Farmers'  and  Mechanics'  Bank.  Subsequently  he  studied  law  in  the 
office  of  his  uncle,  Isaac  Hazelhurst,  and  in  the  Law  Department  of  the 
University,  and  was  admitted  to  the  bar.  He  practiced  law  for  many 
years  with  his  father  and  his  uncle,  John  Ashhurst,  at  No.  i6  South  Third 
Street,  and  during  this  time,  when  his  father's  dechning  health  caused 
his  retirement  from  the  Philadelphia  Bank  board  in  1874,  was  elected 
his  successor.  In  1881  Richard  Ashhurst  went  into  partnership  with 
WiUiam  Wharton,  Jr.,  and  Edward  Samuel,  as  William  Wharton,  Jr.,  & 
Co.,  for  the  construction  of  railway  supphes  for  trolley  lines,  then  first 
beginning  to  be  built.  Their  business  becoming  greatly  enlarged,  the 
firm  was  afterward  chartered  as  WilUam  Wharton,  Jr.,  &  Co.,  Incor- 
porated, and  Mr.  Ashhurst  was  elected  secretary  and  treasurer  of  the 
company,  which  position  he  still  holds.  He  was  many  years  ago  made 
the  treasurer  of  the  American  Sunday  School  Union,  in  which  he  has 
taken  great  interest,  and  he  still  occupies  the  office  at  the  request  of  the 
Board  of  Managers,  though  not  now  performing  the  active  duties.  Mr. 
Ashhurst  is  the  president  and  treasurer  of  the  Tuckerton  Railroad,  and 
director  of  the  Camden  and  Burlington  County  Railroad  and  of  the  Tucker- 
ton and  Long  Beach  Building,  Land  and  Improvement  Association,  and 
he  has,  for  a  long  period,  been  a  vestryman  of  St.  Peter's  Protestant  Epis- 
copal Church. 


Lincoln  Godfrey,  elected  director  January  13,  1880,  and  \'ice-president, 
June  5,  1S99,  was  born  in  Philadelphia,  May  17,  1850,  and  was  the  son 
of  Benjamin  G.  Godfrey,  for  many  years  a  director  of  the  Philadelphia 
Bank,  and  the  nephew  of  Marshall  Hill,  also  long  a  director.  He  was 
educated  at  the  Germantown  Academy,  and  afterward  at  the  Ury  House 
School,  Foxchase,  which  he  left  at  the  age  of  sixteen  to  enter  his  father's 
business  house,  B.  G.  Godfrey  &  Co.  He  was  admitted  a  partner  in 
1872,  and  in  1873  withdrew,  to  enter,  at  its  formation,  the  present  house 
of  Wm.  Simpson,  Sons  &  Co.,  of  which  he  is  now  the  senior  partner. 
]\Ir.  Godfrey  is  also  president  of  the  Eddystone  Manufacturing  Company, 
a  director  of  the  Pennsylvania  Railroad  Company,  of  the  Philadelphia 
Trust,  Safe  Deposit  and  Insurance  Company,  and  of  the  Insurance  Com- 
pany of  North  America,  a  manager  of  the  Western  Saving  Fund  Society, 
and  of  the  Alerchants'  Fund  and  a  trustee  of  the  Hospital  of  the  Protestant 
Episcopal  Church  in  Philadelphia. 


2o6  Appendix 

John  H.  Converse,  elected  director  May  7,  1885,  was  born  in  Burling- 
ton, Vermont,  December  2,  1840.  He  was  educated  in  the  schools  of 
that  city  and  at  the  University  of  Vermont,  from  which  he  graduated  in 
1861.  For  three  years  subsequently  he  was  engaged  in  journaHsm  on 
the  staff  of  the  BurHngton  "Times,"  and  then  removing  to  Chicago, 
entered  the  service  of  the  Chicago  and  Northwestern  Railway  in  1864. 
Here  he  continued  two  years,  and  in  1866  accepted  a  position  under  Dr. 
Edward  H.  Williams,  then  general  superintendent  of  the  Pennsylvania 
Railroad,  at  Altoona.  Dr.  Williams,  in  1870,  became  one  of  the  owners 
of  the  Baldwin  Locomotive  Works  in  Philadelphia,  and  Mr.  Converse 
was  given  by  him  a  desirable  position  in  that  estabhshment,  and  in  1873 
was  admitted  a  partner  in  the  firm  with  which  he  has  since  continued, 
being  now  in  charge  of  the  general  business  and  financial  management  of 
that  great  manufactory.  Mr.  Converse  is  a  director  of  the  Philadelphia 
Trust,  Safe  Deposit  and  Insurance  Company,  the  Real  Estate  Trust 
Company,  and  a  manager  of  the  Philadelphia  Saving  Fund  Society.  He 
is  a  member  of  the  Board  of  Directors  of  Philadelphia  City  Trusts,  a 
trustee  of  the  Presbyterian  Hospital,  of  the  Pennsylvania  Academy  of  the 
Fine  Arts,  and  of  the  University  Extension  Association.  He  is  also  presi- 
dent of  the  Board  of  Trustees  of  the  General  Assembly  of  the  Presby- 
terian Church  in  the  United  States,  chairman  of  the  Business  Committee 
of  the  Board  of  Publication  of  the  General  Assembly,  and  also  chairman 
of  its  Committee  on  Evangelistic  Work.  He  has  been  always  liberal  in 
his  benefactions  to  charities,  churches,  educational  and  civic  institutions, 
and  to  his  Alma  Mater,  and  in  1897  the  University  of  Vermont  conferred 
upon  him  the  honorary  degree  of  LL.D. 


George  Wood,  elected  director  January  23,  1890,  was  born  in  Phila- 
delphia, July  I,  1842.  He  was  the  son  of  Richard  D.  W^ood,  a  very  prom- 
inent merchant  and  manufacturer,  who  was  long  a  director  of  the  Phila- 
delphia Bank,  and  was  educated  at  private  schools  in  Philadelphia,  at 
Westtown  Boarding-School,  and  at  Haverford  College.  He  entered  the 
business  office  of  his  father,  who  owned  the  cotton  mills  at  Millville,  N.  J., 
operated  by  the  firm  of  Wood  &  Garrett;  and  in  1863  he  was  admitted 
to  partnership  in  that  firm.  In  1864  he  removed  to  Millville,  N.  J.,  to 
take  charge  of  the  manufacturing  part  of  the  business.  During  his  ad- 
ministration there  the  mills  were  greatly  enlarged;  he  organized  and 
built  a  bleach  and  dye  works  and  finishing  establishment;  developed  the 


Appendix  207 

water  power  there ;  and  had  the  oversight  of  the  construction  of  the  cotton 
mills  and  development  of  the  water  power  at  May's  Landing,  N.  J.  In 
187 1  Mr.  Wood  returned  to  Philadelphia,  taking  up  the  direction  of  the 
commercial  department  of  the  business.  He  became  a  director  of  the 
IMillville  and  Glassboro  Railroad  upon  its  construction,  and  when  it  was 
merged  into  the  West  Jersey  Railroad  was  elected  a  director  of  that  com- 
pany, being  chairman  of  its  Finance  Committee.  He  was  made  president 
and  superintended  the  construction  of  the  West  Jersey  &  Atlantic  Rail- 
road, connecting  Atlantic  City  with  the  West  Jersey  system.  He  was 
elected,  in  March,  1891,  a  director  of  the  Pennsylvania  Railroad  Company. 
In  1 88 1  Mr.  Wood  was  one  of  the  originators  of,  and  for  years  was  the 
president  of  the  Philadelphia  Manufacturers'  Mutual  Fire  Insurance 
Company,  and  upon  resigning  the  active  supervision  of  that  company, 
was  elected  its  vice-president.  He  is  president  of  the  Milhdlle  Manu- 
facturing Company  and  the  May's  Landing  Water  Power  Company;  and 
a  director  of  the  Pennsylvania  Railroad,  the  Pennsylvania  Company, 
West  Jersey  &  Seashore  Railroad,  Millville  National  Bank,  Philadelphia 
Manufacturers'  Mutual  Fire  Insurance  Company,  and  the  Mutual  Fire, 
Marine  and  Inland  Insurance  Company. 


Lawrence  Johnson,  elected  director  November  21,  1891,  was  bom 
in  Philadelphia,  September  28,  1849,  the  son  of  Lawrence  Johnson,  the 
well-known  founder  of  the  Johnson  Type  Foundr}^  of  Philadelphia,  was 
educated  at  Dr.  Faires'  School,  and  at  Princeton  College.  In  1868  he 
began  business  as  a  clerk  in  the  shipping  house  of  Isaac  Hough  &  Morris, 
continuing  for  about  two  years.  Upon  becoming  of  age  in  1870,  he  started 
in  business  for  himself  in  the  firm  of  Lawrence  Johnson  &  Co.,  shipping 
and  commission  merchants  and  foreign  bankers,  which  he  has  since  con- 
tinued. Mr.  Johnson  is  a  director  of  the  Pennsylvania  Company  for 
Insurances  on  Lives  and  Granting  Annuities,  the  Insurance  Company 
of  North  America,  and  the  Philadelphia  Warehouse  Company. 


Alfred  C.  Harrison,  elected  director  February  18,  1895,  was  born 
in  Philadelphia,  February  20,  1846,  and  was  the  son  of  George  L.  Harrison. 
He  was  educated  at  preparator}'  schools,  and  at  the  University  of  Penn- 
sylvania, graduating  from  the  latter  in  1864.  He  began  business  the  same 
year  in  the  ser\'ice  of  the  Franklin  Sugar  Refiner}',  and  continued  until 
1892,  when  he  retired  from  active  business.     Mr.  Harrison  is  a  director 


2o8  Appendix 

of  the  North  Pennsylvania  Railroad  Company,  a  manager  of  the  Western 
Saving  Fund  Society  and  of  the  House  of  Refuge,  and  a  director  of  the 
Williamson  Free  School  of  Mechanical  Trades. 


Levi  L.  Rue,  elected  cashier  November  i,  1894,  director  October  28, 
1S97,  and  second  vice-president  April  5,  1900,  was  born  in  Philadelphia, 
July  14,  i860.  He  was  educated  at  the  public  schools  of  the  city,  and 
on  December  5,  1878,  began  his  service  with  the  Philadelphia  National 
Bank,  advancing  step  by  step,  from  a  junior  position  in  the  Bank,  through 
all  its  various  departments,  until  he  was  elected  assistant  cashier  April  13, 
1S93,  and  subsequently  cashier  and  second  vice-president,  both  of  which 
positions  he  now  fills.  Mr.  Rue  is  a  manager  of  the  American  Baptist 
Publication  Society,  and  a  member  of  its  Executive  Committee,  a  trustee 
and  treasurer  of  the  Baptist  Home  of  Philadelphia,  and  a  member  of 
the  Society  of  the  Sons  of  the  Revolution. 


George  Harrison  Frazier,  elected  director  June  10,  1899,  was  born 
in  Philadelphia,  January  18,  1867,  the  son  of  WiUiam  W.  Frazier,  and 
grandson  of  George  L.  Harrison.  His  maternal  uncle,  Charles  C.  Harri- 
son, was  formerly  a  director  of  the  Philadelphia  Bank,  and  he  is  also  the 
nephew  of  Alfred  C.  Harrison,  now  a  director.  He  was  educated  at  the 
Episcopal  Academy  and  the  University  of  Pennsylvania,  graduating  from 
the  latter  in  1887.  He  began  business  with  the  Frankhn  Sugar  Refining 
Company  in  188S,  and  in  1890  became  secretary  of  the  company.  WTien 
the  American  Sugar  Refining  Company,  in  1892,  acquired  the  stock  of 
this,  the  Spreckels  and  Knight  Sugar  Companies  in  Philadelphia,  Mr. 
Frazier  became  secretary  of  all,  and  later  treasurer  and  business  manager. 
In  1 89 7  he  entered  the  banking  house  of  Brown  Brothers  &  Co.,  and 
in  1899  became  a  partner  in  that  house  and  in  Brown,  Shipley  &:  Co., 
of  London.  Mr.  Frazier  is  president  of  the  United  States  Sugar  Refining 
Company,  treasurer  of  the  Franklin  and  Spreckels  Sugar  Refining  Com- 
panies, and  a  director  of  the  Franklin  National  Bank,  the  Pennsylvania 
Company  for  Insurances  on  Lives  and  Granting  Annuities,  the  United 
States  Casualty  Company  of  New  York,  the  Philadelphia  Company  of 
Pittsburg,  and  the  Schuylkill  River  East  Side  Railroad.  He  is  also  treas- 
urer of  the  Hospital  of  the  Protestant  Episcopal  Church  in  Philadelphia, 
and  the  treasurer  of  the  Philadelphia  City  Institute. 


Appendix  209 

Alexander  J.  Cassatt,  elected  director  June  12,  1899,  was  born  in 
Pittsburg,  December  8,  1839.  His  father,  Robert  S.  Cassatt,  was  actively 
engaged  in  the  industries  of  western  Pennsylvania,  and  was  the  first  mayor 
of  Allegheny  City.  His  early  education  was  in  the  Pittsburg  schools, 
but,  the  family  removing  abroad,  he  received  a  liberal  education  there, 
and  studied  at  the  University  of  Darmstadt.  Returning  to  this  country, 
he  took  the  course  at  the  Rensselaer  Polytechnic  College  of  Troy,  and 
graduated  in  1859  3-s  a  civil  engineer.  His  first  railway  labors  were  in 
Georgia,  but  in  1861  he  began  work  as  a  rodman  on  the  Pennsylvania 
Railroad,  and  in  1863  was  an  assistant  engineer  in  the  construction  of 
the  Connecting  Railway  passing  through  Northern  Philadelphia.  The 
next  year  he  began  service  on  the  Philadelphia  and  Erie  Railroad,  becoming 
superintendent  of  motive  power.  This  post,  in  November,  1867,  he  filled 
upon  the  Pennsylvania  Railroad,  with  headquarters  at  Altoona.  In  1870 
he  became  general  superintendent,  and  in  December,  1871,  general  manager 
of  all  the  Pennsylvania  lines  east  of  Pittsburg  and  Erie,  with  his  office 
in  Philadelphia.  He  was  elected  third  vice-president  in  1874,  and  first 
vice-president  in  1880.  In  1882  he  retired  from  active  duty,  and  in  Septem- 
ber, 1883,  he  was  elected  a  director  of  the  Pennsylvania  Railroad  and 
made  chairman  of  the  Committee  on  Road.  After  a  long  retirement 
from  active  business,  Mr.  Cassatt  returned  to  executive  duty  in  June, 
1899,  when  he  was  elected  president  of  the  Pennsylvania  Railroad.  He  is 
president  of  a  multitude  of  the  auxiliary  and  subsidiary'  companies  in  the 
Pennsylvania  system,  and  has  become  the  first  in  rank  of  the  railway  mana- 
gers of  America.  Mr.  Cassatt  is  also  a  director  of  the  Fidelity  Trust  Com- 
pany and  the  Commercial  Trust  Company  and  of  the  Equitable  Life  Assur- 
ance Society  of  New  York,  and  a  trustee  of  the  Bryn  Mawr  Hospital. 


Percival  Roberts,  Jr.,  elected  director  January  9,  1900,  was  born 
in  Philadelphia  in  1857.  His  father  was  Percival  Roberts,  descended 
from  John  Roberts,  who  came  from  Wales  to  settle  in  what  is  now  Lower 
Merion  Township,  Montgomery  County,  in  1682,  and  his  mother  was 
Eleanor  Williamson  Roberts,  descended  from  Duncan  Williamson,  who 
came  from  Scotland  to  Philadelphia  about  the  same  time,  both  being 
original  settlers  in  Wilham  Penn's  province.  Percival  Roberts,  Jr.,  was 
educated  at  the  Episcopal  Academy,  and  afterward  at  the  University  of 
Pennsylvania  and  Haverford  College,  graduating  from  the  latter  in  1876. 
During  that  year  he  was  for  several  months  a  volunteer  assistant  in  the 
14 


2IO  Appendix 

Geological  Survey  of  Pennsylvania.  In  November,  1876,  he  entered  the 
Pencoyd  Iron  Works  as  a  mill  clerk,  and  the  next  year  took  a  post-graduate 
course  in  chemistry  and  metallurgy  at  the  University  of  Pennsylvania, 
subsequently  returning  to  the  Pencoyd  service,  which  became  his  hfe 
work.  He  served  in  every  branch  of  that  manufactory,  which  grew  up 
from  a  small  establishment  when  he  entered  it,  learning  every  detail  of 
the  business  of  making  iron  and  steel,  and  particularly  of  bridge-building 
and  structural  forms,  which  afterward  became  its  especial  hne.  The 
Pencoyd  Works  were  founded  in  1852  by  his  father,  Percival  Roberts,  and 
Algernon  Roberts,  who  had  then  a  capital  of  only  $5000.  The  estabhsh- 
ment  prepared  the  girders  and  other  structural  material  for  the  buildings 
of  the  Centennial  Exhibition  of  1876.  Gradually  the  scope  and  character 
of  the  Pencoyd  Works  were  extended  under  the  care  of  Percival  Roberts, 
Jr.,  who  became  the  directing  head,  a  special  bridge  department  was 
added,  the  business  completely  reorganized  with  electrical  and  other 
modern  appliances,  and  finally  the  Pencoyd  became  the  chief  factor  in 
forming  the  American  Bridge  Company,  of  which  Percival  Roberts,  Jr., 
was  made  the  president.  This  company  was  afterward  absorbed  by  the 
United  States  Steel  Corporation,  and  Mr.  Roberts  retired  from  active 
business,  and  has  during  1903  been  taking  a  well-earned  rest  abroad. 


George  H.  McFadden,  elected  director  April  20,  1900,  was  born  in 
Philadelphia,  July  24,  1847.  He  was  educated  at  the  Friends'  Central 
School  in  Philadelphia,  from  which  he  graduated.  His  father,  George 
McFadden,  was  a  prominent  cotton  merchant.  In  1868,  after  his  father's 
death,  he  estabHshed  the  firm  of  George  H.  McFadden  &  Bro.,  leading 
cotton  factors,  which  has  since  continued.  This  firm  has  branches  and 
correspondents  in  different  cities  of  America  and  Europe,  and  Mr.  IMc- 
Fadden  is  also  a  partner  in  leading  firms  of  cotton  factors  in  Europe, 
Frederic  Zerega  &  Co.,  of  Liverpool,  McFadden  Bros.  &  Co.,  of  Bremen, 
and  the  Societe  d'  Importation  et  de  Commission,  of  Havre.  He  is  also 
a  manager  of  the  Girard  Trust  Company,  a  director  of  the  Insurance 
Company  of  North  America,  and  a  manager  of  the  Western  Saving  Fund 
Society  and  of  the  Hospital  of  the  University  of  Pennsylvania. 


William  Potter,  elected  director  May  11,  1900,  was  born  in  Phila- 
delphia, April  17,  1852.  His  father,  Thomas  Potter,  was  for  many  years 
the  president  of  the  City  National  Bank,  of  which  William  Potter  was  a 


Appendix 


211 


director  at  the  time  of  the  merger  in  1900  with  the  Philadelphia  National 
Bank.  His  mother  was  Adaline  Coleman  Potter,  and  her  grandfather, 
General  Jacob  Bower,  of  Reading,  and  her  great-grandfather.  Colonel 
Joseph  Wood,  of  Philadelphia,  served  in  the  Continental  line  in  the  Revo- 
lutionary War.  He  was  educated  in  private  schools  of  Philadelphia, 
matriculated  at  the  University  of  Pennsylvania,  finished  his  general  educa- 
tion abroad,  and  subsequently  studied  law.  He  then  became  a  partner 
in  his  father's  large  manufacturing  corporation,  Thomas  Potter,  Sons  & 
Company,  estabhshed  in  1837,  was  made  its  vice-president,  and,  entering 
public  life,  was  appointed  a  special  commissioner  to  Europe  by  President 
Harrison,  and  negotiated  a  system  of  sea  post-offices.  In  1891  he  was 
a  delegate  representing  the  United  States  in  the  Congress  of  the  Universal 
Postal  Union  at  Vienna,  which  made  the  general  postal  treaty  coming 
into  effect  October  i,  1892.  In  1892  he  was  appointed  by  President 
Harrison  the  American  Minister  to  Italy.  He  retired  from  active  business 
at  that  time,  and  since  his  return  to  the  United  States  has  devoted  his 
attention  to  the  law.  He  was  a  director  and  secretar}-  of  the  Union  League 
of  Philadelphia.  He  is  president  of  the  Jefferson  Medical  College,  and 
a  manager  of  the  Pennsylvania  Institution  for  the  Deaf  and  Dumb,  and 
was  also  elected  in  1896  an  honoran,-  member  of  the  New  Jersey  Society 
of  the  Cincinnati. 


Edward  T.  Stotesbury,  elected  director  November  19,  1901,  was 
born  in  Philadelphia,  February  26,  1849,  and  was  educated  in  the  pubhc 
and  private  schools  of  the  city,  finishing  at  the  Friends'  Central  School. 
In  1865  he  began  business  with  Rutter  &  Patteson,  wholesale  grocers, 
and  after  about  a  year  entered  his  father's  establishment,  Harris  &  Stotes- 
bun,',  sugar  refiners.  A  short  time  subsequently  he  began  the  banking 
business  as  a  clerk  with  Drexel  &  Co.,  October  26,  1866,  and  gradually 
advanced  through  the  different  departments  of  the  house  until  Januar}' 
I,  1882,  when  he  was  admitted  as  a  partner  in  the  three  houses  of  Drexel  & 
Co.,  Philadelphia;  Drexel,  Morgan  &  Co.,  New  York;  and  Drexel,  Harjes 
&  Co.,  of  Paris.  After  the  death  of  Mr.  A.  J.  Drexel,  the  New  York 
house  was  changed  to  J.  P.  Morgan  &  Co.,  and  the  Paris  house  to  Morgan, 
Harjes  &  Co.,  and  Mr.  Stotesbury  is  partner  in  both.  Mr.  Stotesbur>' 
is  the  president  of  the  Union  League  of  Philadelphia,  and  is  also  a  director 
of  the  Philadelphia  Trust,  Safe  Deposit  and  Insurance  Company,  a  manager 
of  the  Girard  Trust  Company,  director  of  the  Lehigh  \'alley  Raibroad, 


212  Appendix 

Cambria  Iron  Company,  Cambria  Steel  Company,  Pennsylvania  Steel 
Company,  Latrobe  Steel  Company,  Penn  Mutual  Life  Insurance  Com- 
pany, Keystone  Watch  Case  Company,  Jessup  &  Moore  Paper  Company, 
and  is  officer,  director,  and  trustee  in  various  other  corporations. 


James  F.  Hope,  elected  director  June  3,  1902,  was  born  at  Alexandria, 
Scotland,  September  26,  1843,  and  came  with  his  parents  to  America  in 
1847.  He  was  educated  at  the  public  schools  of  Philadelphia,  and  at  the 
age  of  fifteen  began  business  in  the  grocery  house  of  James  Woodside,  on 
Second  Street.  In  1861  he  entered  the  manufactory  of  Thomas  Potter, 
and  has  continued  with  that  estabhshment  ever  since,  advancing  from 
one  department  to  another,  in  all  branches  of  the  business.  He  is  now 
the  secretary  and  treasurer  of  Thomas  Potter,  Sons  &  Company,  in- 
corporated. Mr.  Hope,  in  1863,  entered  the  United  States  Army  in  the 
196th  Pennsylvania  Regiment,  one  of  the  Union  League  Regiments  in  the 
war,  and  he  is  now  vice-president  of  the  Union  League  of  Philadelphia. 
He  is  also  a  member  of  Meade  Post,  Grand  Army  of  the  Republic.  He 
has  been  president  of  the  St.  Andrew's  Society  of  Philadelphia,  was  a 
director  of  the  City  National  Bank  at  the  time  of  the  merger  with  the 
Philadelphia  National  Bank,  is  a  trustee  of  the  Penn  Mutual  Life  In- 
surance Company,  director  of  the  American  Audit  and  Appraisement 
Company,  and  a  manager  of  the  Home  Missionary  Society. 


INDEX 


INDEX 


A  GENT  for  pension  payments,  105 

Allibone,  Thomas,  114,  126 
Anderson,  Major  Robert,  138 
Antietam,  battle,   143 
Appomattox  surrender,  148 
Articles  of  Association,   National  Bank, 

154 
Articles  of  Association,  State  Bank,  23 
Ashhurst,  Richard,  204 
Assignment,  U.  S.  Bank,  98 
Astor,  John  Jacob,  59,  83 
Atlantic  Bank  of  New  York,  162 
Auditor  General's  bank  reports,  90 


DALANCES,  settlement  of,  73 

Bank  failures,  123 
Bank  League,  104 

Bank  note  plates.  State,  canceled,  156 
Bank  of  Commerce,  104 
Bank  of  Georgia,  79 
Bank  of  ^Massachusetts,  20 
Bank  of  New  Orleans,  79 
Bank  of  New  York,  20,  29 
Bank  of  North  America,  20,  35 
Bank  of  Pennsylvania,  19 
Bank  taxes  hea\'}',  145 
Banking,  as  science,  183 
Barings  of  London,  54,  178 
Bayonne  Decree,  50 
Berhn  Decree,  50 
Biddle,  Nicholas,  83,  87,  89,  92 
Binney,  Horace,  61 
Black  Friday,  159 
Blind  pool,  Villard's,  175 
Bonus  for  first  Charter,  34 


Boston  fire,  161 

Boutwell,  George  S.,  159 

Branch  banks,  44,  45,  61,  64,  68,  78,  80 

Bridge  stocks,  39 

Bright,  Michael,  50 

Brockie,  William,  176 

Brooklyn  Trust  Co.,  163 

Brown,  Daxad  S.,  112 

Building,  first  bank,  26 

Building,  second  bank,  43 

Building,  third  bank,  91 

Building,   fourth  and  present  bank,  36, 

128 
Building,  present,  first  occupied,  130 
Building,  present,  reconstructed,   182 
Burning  notes,  41,  156 
Business  begun,  28 
Business  begun  as  National  Bank,  155 


pAJvlPBELL,  Quintin,  28,  41,  43,  77, 

86,  88,  130 
Canal  Commissioners,  82,  iii 
Capital  increased,  37,  38,  57 
Capital  reduced,  96,  106,  154 
Capital  subscribed  by  Pennsylvania,  37 
Carpenter's  Hall,  72 
Cashier  first  records  minutes,  41 
Cashier  secretary  of  Board,  40 
Cassatt,  Alexander  J.,  185,  209 
Centennial  Exposition,  1876,  165 
Central  America  steamer  wrecked,  121 
Charter,  first,  30,  33 
Charter  extended,  35,  80,  89 
Charter,  first,  as  National  Bank,  153,  154 
Charters  for  banks,  Omnibus  BiU,  36 


215 


2l6 


Index 


Chatham,  Benjamin  F.,  159,  161,  175 

Chauncey,  Charles,  60,  74 

Chesapeake  and  Delaware  Canal,  81 

Chesapeake  outrage,  50 

Chicago  fire,  161 

City  National  Bank,  187 

Civil  War  begins,  138 

Civil  War  ends  by  proclamation,  150 

Clearing  House,  126 

Clearing  House  Loan  Certificates,   139, 

164,  175,  178 
Clerks  as  volunteers,  61,  139,  143 
Clerks'  Pension  Fund,  115,  188 
Clerks  take  oath  of  allegiance,  156 
Cleveland  and  Mahoning  Railroad,  112 
Clymer,  George,  26,  40,  50,  57 
ColHns,  Alfred  M.,  177,  182 
Columbia  Railroad,  in 
Comegys,   Benjamin   B.,    no,    113,    155, 

i57>  159.  161,  164,  171,  172,  173,  174, 

177,  180,  181,  185 
Comeg}'s,  Benjamin  B.,  Jr.,  175,  176 
Commercial  Bank,  122 
Committee  for  first  Charter,  31 
Committee  on  Loan  Certificates,  140 
Committee  to  meet  other  banks,  38,  43 
Converse,  John  H.,  206 
Cooke,  Jay,  &  Co.,  163 
Cope,  John  E.,  176 
Cope,  Thomas  P.,  in 
Cotton  famine,  144 
Counterfeiting,  42 
Coxe,  James,  43 
Crimean  War,  120 
Currency  scarcity,  179 


Discounts,  amount  first  recorded,  40 
Di\'idend,  first,  37 
Di\-idend,  second,  39 
Di\-idend,  special,   157 
Dividends,  list  of,  202 
Dividends  passed,  78,  loi 
Dividends,  total,  paid,  188 
Drexel,  Francis  M.,  129 
Driving  golden  spike,  175 
Duane,  William  J.,  85 
Dunlap,  Thomas,  92 
Dyott,  Dr.  Thomas  W.,  93 


CCLECTIC  Life  Insurance  Co.,  163 

Embargo,  49,  50 
Embargo  repealed,  51 
English  war,  56 
Erie  Canal,  112 
Erie  Railroad,  123 
Erie  Railway  corner,  159 
Erringer,  J.  Livingston,  204 
Exchange  Committee,  U.  S.  Bank,  97, 
Exchanges,  first,  43 
Exchanges  of  notes,  72 


CARMERS'  and  Mechanics'  Bank,  35 

Farmers'  Bank  of  Dover,  171 
Firing  on  Fort  Sumter,   138 
First  National  Bank,  Johnstown,  178 
Fisher,  Charles  Henry,  119 
Forgeries,  42,  56 
Fractional  notes  issued,  63 
Frazier,  Geo.  Harrison,  20S 


PjALLAS,  Alexander  J.,  32,  71 

Dallas,  George  M.,  108 
Davis,  Jefferson,  138 
Delaware,    Lackawanna    and    Western 

Railroad,  123 
Directors,  biographies,  203 
Directors,  first  election,  43 
Directors,  list  of,  199 
Directors,  total  number  of,  188 


pALL.^TIN,  Albert,  57,  58,  71 
Garfield,  President,  shot,  175 
Gettysburg,  battle,  145 
Girard  Bank,  86,  90,  102,  122 
Girard,  Stephen,  54,  59,  63,  86 
Godfrey,  Lincoln,  182,   185,   186,  205 
Gold  in  California,  120 
Gold  premium  begins,   142 
Gold  premium  disappears,  167 


Index 


217 


Gold  sold  by  bank,  147 

Gold  speculation,  159 

Golden  spike,  175 

Goods,  loans  on,  51 

Granger  agitation,  162 

Grant,  Ulysses  S.,  146,  148,  165,  176 

Grant  and  Ward,  175 

Gratuity  for  first  charter,  34 

Gregg,  James  M.,  175 

Guier,  William,  37 


UAMILTON,  Alexander,  19,  29 

Harrison,  Alfred  C.,  207 
Heaton,  Augustus,  185 
Hill,  Horace,  180 
Hill,  Marshall,  159 
Holidays,  41 
Home  guard,  139 
Hope,  James  F.,  212 


1   ATROBE,  B.  H.,  44 

Lawler,  Matthew,  24,  50 
Lee,  General,  148 

Legal  tender  notes  issued,  143,  144 
Lenox,  David,  50,  55,  58,  59,  72,  74 
Lincoln,  Abraham,  135,   139,  147 
Lincoln,  Abraham,  assassinated,   149 
Lincoln  Institution,  158 
Loan  Certificates,  Clearing  House,   139, 

164,  175.  178 
Loan,  first,  28 
Loans  to  Pennsylvania,  58,  60,  79,  82,  83, 

103,  139,  140,  145 
Loans  to  Pennsylvania  Bank,  122 
Loans  to  Philadelphia,  38,  60,  120,  137, 

146,  166 
Loans  to  United  States,  57,  58,  60,  140, 

145,  146,  161,  184 
Loans  to  United  States  Bank,  95 
Loans  on  goods  begun,  51 
Long,  William,  130 


ILLINOIS  Central  Railroad,  123 
Income  tax  first  collected,  145 
Inflation,  144 
Inflation  Bill  vetoed,  165 
Internal  Improvements,  81,  iii 
Ivy  Mills,  42 


JACKSON,  Andrew,  83,  84,  85,  87,  88, 
^      108 

James,  Kent,  Santee   &  Co.,  146 
Johnson,  Andrew,  150 
Johnson,  Lawrence,  207 
Johnstown  Flood,  178 
Jones,  Samuel  W.,  95,  107,  114,  119,  165 


I/ENDALL,  Amos,  84,  86 

Keser,  Harry  J.,  187 
Kisterbock,  Josiah,  Jr.,  187 
Koch,  John  Gerard,  56 


Mcculloch,  Hugh,  155 

McFadden,  George  H.,  210 
McKean,  Thomas,  Governor,  ^;i,  37,  39 
McKinley,  William,  184 
McLane,  Louis,  85 
McLeod,  A.  A.,  178 
Manhattan  Company,  N.  Y.,  29 
Manual  Labor  Bank,  93 
Manufacturers'  Bank,  104 
Marine  Bank,  175 
Marking  checks  "good,"  97 
Martin,  James,  94 
Marj'land  Bank,  Baltimore,  20 
Mason  and  Slidell  captured,  142 
Mason,  Jeremiah,  83 
Mechanics'  Bank,  104 
Meeker,  Samuel,  24 
Merchants'  Association,  157 
Merchants'  Bank,  New  York,  23,  29 
Metropolitan  Bank,  175 
Mexican  War,  109 
Milan  Decree,  50 
Minutes  first  kept  by  cashier,  41 


2l8 


Index 


Mobile  captured,  149 
Money  in  bank  first  counted,  3 
Montesquieu  captured,  59 
Morgan,  J.  Pierpont,  175 
^lorris,  Robert,  20 
Moyamensing  Bank,  104,  105 


MATIONAL  Bank  acts  passed,  146 

National  Bank  Charter,  147, 153, 154 
National  bank  notes  first  issued,  157 
New  Orleans,  Battle  of,  63 
New  York  Central  Railroad,  175 
New  York  Stock  Exchange  closed,  164 
New  York  Warehouse  and  Security  Co., 

163 
Non-Intercourse  Act,  51 
North  Pennsylvania  Railroad,  112 
Northern  Liberties  Bank,  72 
Northern  Pacific  Railroad,  163,  175 
Note  for  discount  must  be  presented,  40 
Notes,  first  burning,  41 
Notes,  first  issue,  27 
Notes,  first  tax  on,  60 
Notes,  fractional,  issued,  63 
Notes,  Girard's,  refused,  55 
Notes,  Girard's,  received,  58 
Notes,  National  Bank,  first  issued,  157 
Notes,  paper  for  printing,  42 
Notes,  small,  first  issue,  41 


QFFICERS,  list,  198 

Ofiicial  Staff,  1803,  list,  23,  194 
OflScial  staff,  1864,  list,  156 
Official  staff,  1903,  list,  195 
Official  staff,  number  of,  188 
Ohio  Life  and  Trust  Co.,  121 
Opening,  Philadelphia  Bank,  28 
Opposition  to  charter,  32 
Orders  in  Council,  50 
Organization,  1803,  23,  194 
Organization,  1864,  156 
Organization,  1903,  195 
Origin,  Philadelphia  Bank,  19 
Overend,  Gurney  &  Co.,  suspension,  158 


DACIFIC  railways,  161 

Panic  of  1837,  87 
Panic  of  1857,  119 
Panic  of  1873,  161 
Panic  of  1890,  178 
Paper  tokens  issued,  63 
Parrish,  David,  59 
Pemberton,  Joseph,  26 
Penn  Township  Bank,  104 
Pennsylvania  enabhng  act  for  national 

banks,  154 
Pennsylvania  Bank,   20,  30,  ;^;^,  35,  36, 

90,  102,  103,  120,  121 
Pennsylvania  Bank  building  bought,  128 
Pennsylvania  Bank  closes,  124 
Pennsylvania  Bank  robbed,  76 
Pennsylvania  Co.  for  Insurances,  56 
Pennsylvania  Fire  Insurance  Co.,  88 
Pennsylvania  Railroad,  82,  iii,  112,  122, 

184 
Pennsylvania  railroad  stock  subscribed, 

112 
Petersburg  captured,  14S 
Petition  for  first  charter,  31 
Philadelphia  Bank  robbed,  76,  78 
Philadelphia  in  1803,  21 
Philadelphia  Trust  Co.,  128 
Pleasanton,  A.  J.,  Col.,  139 
Pollock,  James,  Governor,  122 
Porter,  David  R.,  Governor,  94,  102 
Potter,  WilHam,  210 
Premium  on  gold  begins,  162 
Premium  on  gold  disappears,  167 
Public  Safety  Committee,  139 


P^EAD,  John,  74,  103 

Read,  John  M.,  86,  103 
Reading  Railroad,  17S,  179 
Reconstruction,  158 
Removal  of  the  Deposits,  83 
Reserves,  twenty-five  per  cent,  suggested, 

140 
Resumption  act,  166 
Resumption  of  specie  payments,  65,  66, 

92,  94,  104,  125,  126,  166,  167 


Index 


219 


Richmond  captured,  148 

Riots  of  1877,  165 

Ritner,  Joseph,  Governor,  92 

Robberies,  76,  78 

Roberts,  Joseph,  177 

Roberts,  Percival,  Jr.,  209 

Robins,  Thomas,  95,  114,  126,  127,  129, 

149.  154,  155.  167,   176 
Rue,  Levi  L.,  iSo,  186,  208 
Runs,  97,  104,  122,  123,  163 
Rush,  Lewis,  56 


Stockholders,  number  of,  188 
Stokley,  William  S.,  166 
Stotesbury,  Edward  T.,  211 
Sub-treasury  system,  93,  94 
Suez  Canal,  162 
Sumter,  Fort,  surrenders,  138 
Surplus,  treasury,  distributed,  90 
Suspension  of  specie  payments,   61,   62, 

91,  93,  122,  135,  136,  143 
Susquehanna  and  Juniata  Canals,  83 


CCHUYLKILL  Bank,  93 
Science  of  banking,  1S3 
Semi-centenar}-,  President  Comegys,  181 
Sergeant,  John,  65 
Sherman,  General,  146,  148 
Shinplasters,  73,  91 
Shoemaker,  Jacob,  25,  56 
Shortridge,  N.  Parker,  182,  186,  203 
Silver  craze,  179 
Sitting  Bull,   175 
Smith,  Samuel  F.,  45,  94,  103,  107,  109, 

113.  130 
Snyder,  Simon,  Governor,  36,  57 
Soldiers'  and  Sailors'  Fair,  157 
South  Carolina  secession,  137 
Spanish  silver  dollars,  39,  57,  59 
Spanish  War,   184 
Specie  bought,  65 
Specie,  first  special  deposit,  39 
Specie  scarcity,  30,  39,  41,  53,  91 
Staff,  1803,  194 
Staff,  1864,  156 
Staff,  1903,   195 
Staff,  number  of,  188 
State  bank  notes,  taxed,   154 
State  Directors  withdraw,  106 
State  stock  sold  at  auction,  106 
State  subscribes  stock,  37 
Statement,  first,  1816,  67,  192 
Statement,  1903,  188,  193 
Stephen  Girard's  Banking  House,  55 
Stock  at  lowest  price,  102 
Stock  Exchange,  N.  Y.,  closed,  164 


-TANEY,  Roger  B.,  85 

Tax  on  bank  notes,  first,  60 
Taxes,  heavy,  145 
Thomson,  Frank,  184 
Tickets  issued  (notes),  63 
Todd,  James,  26,  43 
Torrey,  James  W.,  175,  179 
Townsend,  Edward  Y.,  177 
Treasury  notes  issued,  126 
Treasun,'  7.30  notes  issued,  140 
Trevor,  John  B.,  88,  113 
Turnpike  stocks,  39 

Twenty-five  per  cent,  resers-es  suggested, 
140 


T  TNITED   States  Bank    building,  first. 

United  States  Bank  building,  second,  91 
United  States  Bank,  first,  20,  52,  53 
United  States  Bank,  second,  64,  71 
United  States  Bank  of  Pennsylvania,  88 
United  States  Bank  fails,  97,  98 
United  States  Bank  assigns,  98 
United  States  Bank,  assets  sold,  106 
United  States  bonds  bought  for  security, 

155 
United  States  bonds  bought  in  Europe, 

148 
United  States  deposit,  first,  57 
United  States  depositor}-,  105 
United  States  Mint,  20 
Ups  and  Downs  of  Early  Banking,  loi 


220 


Index 


yETO  of  United  States   Bank  charter, 

84 
Vicksburg,  surrender,  145 
Villard,  Henry,  175 
Volunteer  Refreshment  Saloons,  157 


WAR  Loans,   138 

War  with  England,  56 
War  with  Mexico,  109 
War  with  Spain,   184 
War  of  Rebellion,  138 
Washington,  captured,  61 
Webster,  Daniel,  83 
Weitzel,  General,  148 


Welsh,  John,  19,  21,  25,  37,  52,  56,  115, 

176 
Welsh,  John,  2d,  176 
Welsh,  Samuel,  176 
West  Shore  Railroad,  175 
Western  Bank,  128 
Wharton,  Henry,  154,  156 
Whitney,  George,  176 
Wilderness  campaign,  146 
Willcox,  Mark,  42 
Wolcott,  Oliver,  29 
Wood,  George,  206 
Wood,  Richard  D.,  94,  112,  130,  146 
Worrell,  William,  115 


UCSB   LIBRARY. 


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